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Old 6th Dec 2014, 12:49
  #6 (permalink)  
Metro man
 
Join Date: Jan 2000
Location: Asia
Posts: 2,378
This is why ALDI are doing well, a chain such as Tesco or ASDA has to supply major brands such as Cadburys and Coca Cola, and the brands know this. This gives them massive power to set prices and squeeze the supermarket profit margins.

ALDI supply a much reduced number of items from lessor or unknown suppliers and are very much in the driving seat when it comes to pricing, as their customers don't expect name brands and will be happy any supplier as long as the quality and price are right.

Some supermarket own brands come out better in consumer magazine tests than the market leaders. For items such as cooking oil, milk and flour the average shopper couldn't tell the difference anyway.
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