Magazine article Marketing

Superdrug Set to Ignore MMC

Magazine article Marketing

Superdrug Set to Ignore MMC

Article excerpt

High street retailers are to continue selling cut-price perfumes, despite last week's decision by the Monopolies and Mergers Commission to support selective distribution practices in the perfume industry.

Consumers will still be able to purchase the bargain perfumes, though only from retail chains able to tap into the grey import market.

Although the fragrance houses are not allowed to restrict distribution just because a retailer sells the product at a lower price, the MMC has upheld their right to use only retailer outlets which provide a suitable environment for the sale of their luxury goods.

Yet all of the main cut-price perfume retailers, deemed by the fragrance houses as unsuitable outlets for their perfumes, say they will continue the practice.

Asda, which claims to be the only retailer selling cut-price perfumes nationwide, says that the MMC report "stinks".

"Busy women just don't have time to mess around with perfume consultants, they want to buy fine fragrances with their weekly shopping, at value-for-money prices," says an Asda spokeswoman.

Superdrug says it is determined to continue importing the fragrances on the grey market, and so maintain a distribution system which by-passes the fragrance houses themselves. …

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