Whether the percentages now flatter wholesalers or not, the 80/20 rule in grocery retail is still useful.
It helps to instruct us not only on the balance of the market but how we should approach it: focusing on the main chance while stuff at the margins, though nice to have, should be given a low priority unless it is both compelling and hassle-free.
The importance of the principle was brought home to me at a conference held last weekend by Today's Group, the wholesale arm of Nisa-Today's. With £5bn of buying power (£6.5bn including Nisa), Today's still carries weight. What's more, it is moving nicely in the right direction, with sales up 14% and volumes up 9%, helped by the independent sector's consolidation and by the group getting its act in order.
But is it in the best interests of independents and wholesalers that Today's and Landmark Wholesale the two leading buying groups are such bitter enemies? How helpful is it that Raj Krishan is at the centre of a Rangers vs Celtic tussle. Would a little ground sharing not be advisable?
The 80/20 rule also applies with Today's members: 80% is in the power of only four or five. So should Today's focus on the big guys? Or will the small but voluble tail wag the dog? The danger is that, in trying to please all its members all the time, suppliers will simply go to the main players direct.
(Incidentally, why were 80% of Today's wholesaler board members not at the conference?)
One suggestion I heard was to grow sales of world beers, cider and premium wines. These are small beer. And what of Today's plans for NPD? It's back to the 80/20 rule.
Why would you, when the route to market is so complicated and the opportunity elsewhere is larger and easier?
That's why Today's, along with its members, must do everything in its power to keep its offer simple, easy to follow and hassle-free.
More from this column
It helps to instruct us not only on the balance of the market but how we should approach it: focusing on the main chance while stuff at the margins, though nice to have, should be given a low priority unless it is both compelling and hassle-free.
The importance of the principle was brought home to me at a conference held last weekend by Today's Group, the wholesale arm of Nisa-Today's. With £5bn of buying power (£6.5bn including Nisa), Today's still carries weight. What's more, it is moving nicely in the right direction, with sales up 14% and volumes up 9%, helped by the independent sector's consolidation and by the group getting its act in order.
But is it in the best interests of independents and wholesalers that Today's and Landmark Wholesale the two leading buying groups are such bitter enemies? How helpful is it that Raj Krishan is at the centre of a Rangers vs Celtic tussle. Would a little ground sharing not be advisable?
The 80/20 rule also applies with Today's members: 80% is in the power of only four or five. So should Today's focus on the big guys? Or will the small but voluble tail wag the dog? The danger is that, in trying to please all its members all the time, suppliers will simply go to the main players direct.
(Incidentally, why were 80% of Today's wholesaler board members not at the conference?)
One suggestion I heard was to grow sales of world beers, cider and premium wines. These are small beer. And what of Today's plans for NPD? It's back to the 80/20 rule.
Why would you, when the route to market is so complicated and the opportunity elsewhere is larger and easier?
That's why Today's, along with its members, must do everything in its power to keep its offer simple, easy to follow and hassle-free.
More from this column
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