Randall Sargent Discusses Applied Pressure On Food Suppliers' Inflated Costs

One of the world's largest grocery chains, Carrefour, announced it is pulling some products from its shelves due to high prices.

The pricing issue is one grocery chains face globally with food suppliers.  Retailers in the United States have faced similar instances, Randall Sargent, Retail and Consumer Goods partner, shares that stores in the US will place brands in the "penalty box" to apply pressure on suppliers to decrease prices.

Randall elaborates, explaining that the "penalty box" method taken instead of wiping the product from the store entirely, could mean unfavorable placement on shelves, less promotion and higher prices, making the products "less attractive for consumers to buy that brand relative to another brand," she said.

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