“MICHAEL LUSCOMBE: I think it’s a tragedy that we are talking about anybody losing their job let alone 1800 people. We have worked very closely with Pacific Dunlop because, you know, this has been a business that has not been without its challenges for a number of years.”

Give me a break, it is Woolworths and Coles who brought these job losses about. The vast majority of PacBrands products are sold through these two retailers and their subsidiary outlets.

Coles’ and Woolworth’s buyers have continued to put pressure on prices, both everyday and promotional deals as well as adding to the costs of doing business. Increase in trading terms, pushing logistics costs back onto suppliers, reduced ranging, increase in Home Brands etc.

It is a tragedy that people all over the country are losing their jobs, but take some responsibility Mr Luscombe, don’t start crying crocodile tears.

Tim

Request is probably not the correct word though is it?!

Any Comments, anonymous of course – use a  name like Idi Amin or Robert Mugabe.

Tim

Buyers are not exempt and Wesfarmers are not happy with the buying performance. Buyers have reacted by not accepting price rises and pushing more terms for less activity.

Tim

“If you’ve got a CEO (Brian Quinn) that ends up in jail and you end up firing your merchandise director (Peter Scott) for corruption, it’s a bit tricky for people to actually have belief in the leadership,” he said.

What about an MD with no retail experience and a mustache (John Fletcher), a director who is a major supplier (Sol Lew) and no wonder there have been some issues at Battlestar Galactica.

The canny Scot described the business as “fundamentally broken” when he took over, with management just looking at the next quarters sales/profit cycle and not long term.

So supplier such as Nestle and Unilever are now being asked for more trading terms to cover Coles’ poor management and lack of reinvestment in Fixtures and Fittings.  That makes sense!

How about Coles suck it up and actually offer the suppliers a decent business to deal with before they start screwing the account managers for more funds.

Any thoughts Ian?

Tim

Profit pressures have started a new drive on Trading Terms and Waste Reduction. Measures include deleting some of the best sellers because their waste figures are above the trading terms contribution.

Unilever and Nestle have been amongst those who have been poked and prodded to give more. 9% was a number whispered in my ear from one supplier.

Any idea where this increase in trading terms is supposed to come from, I would have thought they should be handing some back given Coles poor performance of the past 5 years.

Tim