By Patrick Avenell
Ian Campbell, the managing director of GUD Holdings, owner of Sunbeam, has today spoken about the unwillingness of retailers to raise prices and of the pressure imposed upon the supplier by its overseas manufacturers.
Speaking at GUD Holdings’ AGM, Campbell said the strong Australian Dollar has improved the Sunbeam business, but that retailers had not taken advantage of this opportunity.
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“There is no doubt that Sunbeam has benefited from the appreciating Australian dollar, which has also had the effect of reducing the impact of product cost increase pressures, which are being proposed incessantly from offshore suppliers,” Campbell said.
“In many cases we are unable to pass on these increases as retailers are refusing to accept any uplift in prices. Indeed, they are actively seeking price reductions to maintain their own competitiveness or profitability.”
Campbell singled out Target to highlight this phenomenon.
“[This is] evidenced by Target’s announcement late last month that for the period through to Christmas they will be applying an additional 5 per cent rebate on all orders they place. Target has not guaranteed that this additional discount will flow through to their price to consumers.”
Other Sunbeam issues raised by Campbell included the success of its MasterChef Australia partnership, the ongoing rebuilding of its New Zealand business following the Christchurch earthquake and its overall maintenance of its “industry leading position” in Australia and New Zealand.