Verwaltungsratspräsident (Chairman of the Board of Directors), Coop Genossenschaft (Coop Cooperative)
Interview Joos Sutter
Transcript (7 segments)
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Interviewer0:00
As Coop has again posted a good profit, it keeps prices artificially high. So I ask: why do customers pay much less for the same brand products at discounters and abroad than at Coop?
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Joos Sutter0:08
The reality is that Swiss infrastructure and transport costs are high. Naturally, there are massive percentage differences. I would like to reduce prices by 30%, that would help enormously. But still prices are high for brand products manufactured abroad and sold more expensively in Switzerland. Customers are still being ripped off. We need to push harder to reduce this.
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Interviewer0:16
But I want to continue about the brand manufacturer giants without naming names. Communication. Then I'll say a name, for example Nestlé. What comes to mind? The corporation is negotiated. I say, what is a negotiation? Because the courage to feed Africa, Switzerland is twice as expensive as in Germany. And they sell to you. Are you currently recruiting the purchasing at Nestlé Switzerland and getting the products from dealers abroad?
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Joos Sutter0:29
These are the ones you have to take fear from people. Great, such a big difference, and suddenly products are 20% cheaper in negotiation, incredible. That is actually good. The internet clearly shows parallel imports. And why does it only come in homeopathic doses? It is because the whole organization with logistics over Garden Switzerland with 800 branches reduces the quantity. In the end, the same percentage reduces the products, and it is not always easy to apply the quantity. Other markets, you still speak with the corresponding parties, I think.
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Interviewer0:41
But communication is important. Is it all just a big advertising show? After ten years of deflation, this year Swiss retail prices are rising again, also at Coop. Meanwhile, the euro has weakened significantly to 1.7 francs, a 16% change. At Migros, prices are rising. Do you also expect price increases at Coop? Discounts and large retailers try with promotions to barely slow the advance.
A new study says that the price war can hardly be won with promotions. What do you think?
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Joos Sutter0:55
It is so that promotions play a role in prices. Why not make prices permanently lower and do without promotions? We have been integrating that for ten years. It is the same question as ten years ago. But promotions are used. Nearly 60% of respondents say that permanently low prices are more important than promotions for choosing a shopping location. That should give us food for thought. Customers are very important. I have students see many productions.