Nineteen-ninety-eight was the year the multiples started to come under serious attack, accused of monolithic behaviour, artificially high prices and supplier domination. This problem won't go away unless treated with extreme caution.
In this month's feature, Alan Mitchell looks at the massive public relations problem now facing the multiples. Some of his conclusions will not make happy reading for retailers, but they should be taken as a timely warning.
This is not a behavioural problem, it is a PR problem and should be treated as such. Dismissive, throwaway comments do not work in these situations, in fact they just make things worse.
You may argue that all you are doing is running a successful business, so why on earth do you keep having to justify the fact that you make a profit? But tell that to Gerald Ratner, or even Cedric Brown. We are not suggesting you are selling shoddy products or that you are overpaid, rather pointing out the media has immense power to harm.
Mitchell talks about the need for supermarkets to "validate the rage"; i.e. respond to knee-jerk reactions without uttering dismissive, flippant comments.
This is necessary to move onto the new level of trust required if supermarkets are going to succeed in the new role of providing all things for all people.
Phoebe Corke now works as a musician in Australia.
Has the number of customer complaints about the price of goods increased recently?
