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Comet to charge suppliers for shelf space

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Comet to charge suppliers for shelf space

UK electronics retailer claims move is a response to “challenging times for customers”

Reports have emerged that Kesa-owned UK electrical retailer Comet is looking to charge its suppliers for shelf space in its stores.

MarketingWeek reports that the retailer is demanding sums as high as £15,000 from suppliers to get their products into stores across the country.

Speaking to MCV, a spokesperson for Comet would not confirm or deny the claims specifically, but did state: “We can confirm that we are in negotiations with our suppliers. These discussions are commercially sensitive and we will not comment on any of the details.

“In these challenging times our customers are looking for good value and it is our role to negotiate the best possible deals on their behalf.”

The news comes not long after the chain reported an £8m loss for the six months ending October – markedly down on the £10m profit seen in the same period a year before.

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Oh Really

posted by Trent Steel Jan 27, 2009 at 3:48 pm
1
Trent Steel

I can’t see any publisher falling for this! Retailers like Comet are so far removed from what’s actually happening in the games industry.
I seem to recall a supermarket trying the same trick a few years ago but nobody bought into that and at least the Supermarket had something to offer!
I really can’t see any value in a publisher investing in Comet like this?

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Laughable

posted by Harry Young Jan 27, 2009 at 3:59 pm
2
Harry Young

We have lost money so lets charge publishers for shelf space when we have one of the smallest market shares of all the retailers.

Why dont you ask yourself what you are doing wrong with your video game offering rather than shift the focus onto the publisher

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Re: Laughable

posted by MoralsMc Jan 27, 2009 at 4:17 pm
3
MoralsMc

Preposterous.

Yes, I did have to use spell-checker.

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Re: Re: Laughable

posted by techgamer Jan 27, 2009 at 4:53 pm
4
techgamer

They have tried things like this before, an extortionate amout had to be given to them for "Marketing support", other than your product appering in their instore catalogue they were unable to show how this fee was spent promoting suppliers products when asked. This wont end well.

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Re: Re: Re: Laughable

posted by Anon Jan 27, 2009 at 5:08 pm
5
Anon

Has anyone ever tried getting the buying team on the phone very difficult indeed.I bet that will change now that this initiative is being put in place.

I agree with the above comments pay for the privilege of getting your titles in then hope they sell through. What happens if they don't, are we to take back the stock or write it down and if it is the latter will the difference be offset against what the publishers have paid in the first instance?

I appreciate everybody has to do what they have to do to survive in these challenging economic times but many questions will need answers and the guidelines will have to be clear and concise.

A fair amount of transparency will be required also so that we know exactly what we are getting for this outlay.

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Treatment

posted by Anon Jan 27, 2009 at 5:21 pm
6
Anon

Well if it treated its customers better then I'd probably buy stuff from there.
Last two times i've been to my local Comet i've been treated poorly, so thats why I recommend everyone to go Curry's now, including my parents buying a new TV.
Looks like they don't know how to run there business.

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Re: Treatment

posted by keatsmeister Jan 28, 2009 at 8:06 am
7
keatsmeister

I would strongly suspect that games may not necessarily be included in this, except for back catalogue ranges. Games will move through at new release, but these charges may be applied more specifically to lifestyle and white goods ranges, where customers face an often bewildering range of brand names and products. I just wonder whether Comet really believe they have the market power needed to pull this off in the midst of a recession. They are a recognised brand, but they're not exactly in the same kind of position aas the likes of the supermarkets

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Re: Re: Treatment

posted by MarketZero Jan 28, 2009 at 11:04 am
8

This stinks and means that only mainstream suppliers with muchos £££s will be able to afford to sell their wares in Comet. Smaller suppliers with superior products will be priced out by the faceless giants.

I realise that, to a degree, this is already the case.

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