CFO announces a 2.5% retrospective rebate off all their outstanding monies to suppliers (which must be illegal if not immoral!), then plans a pre-Christmas sale and finally provides the City with a profit warning…..well NO surprises there!
When will the larger retailers learn that when you start messing with both your supply chain and more importantly your customers then confidence in your brand diminishes quickly and takes a generation to return.
Debenhams were not the only retailer to introduce a ‘panic’ pre-Christmas sale and it will be interesting to see the M & S numbers later this week.
My guess will be a similar story to Debenhams.
Conclusions: Treat your customers with respect and develop strong partnerships with your supply chain = year on year growth and profitability.