Supermarkets pocket 86 per cent of profits made on items sold on money-off promotions, according to a report seen by The Daily Telegraph.
FMCG suppliers spend£8 billion a year on promotions, hoping they will benefit from the resultant increase in sales volume. But the research claims that suppliers end up with just 14 per cent of profits from the sales.
Research company Billetts analysed more than 15,000 supermarket promotions over the past five years, looking at data that included invoice pricing and funding levels.
Billetts director of promotional effectiveness Martin Wheeler said: “It comes down to better negotiating with retailers. It is not that retailers are necessarily being greedy, it is just that there is an inherent lack of rigour in the FMCG community.”
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