Swiss retailer Coop has taken the extraordinary step of removing the products of several major international manufacturers that have refused to reduce their prices despite making massive profits from a buoyant Swiss franc.

"/> Swiss retailer Coop has taken the extraordinary step of removing the products of several major international manufacturers that have refused to reduce their prices despite making massive profits from a buoyant Swiss franc.

" />
SHARE
COPY LINK

FRANC

Coop takes ‘overpriced’ products off shelves

Swiss retailer Coop has taken the extraordinary step of removing the products of several major international manufacturers that have refused to reduce their prices despite making massive profits from a buoyant Swiss franc.

Coop takes 'overpriced' products off shelves
Marius Zierold

The supermarket has already started to phase out 95 products from well-known producers after failing to negotiate lower prices with their manufacturers.

“Enough is enough. Stop exchange rate profiteers. Delisting discount“, read the slogans of a prominent online campaign being run by the retailer. Coop says it is  fighting for reduced prices on behalf of its customers. Remaining stock is to be sold off for half price from next week, according to the website.

The main products affected are Studio-Line from L’Oréal, the Uncle-Ben’s range from Mars, and Kinder chocolates from Ferrero. Signs on empty shelves inform customers once products are sold out.

Coop wants to set an example with its action, Jürg Peritz, Coop head of sales and marketing, told the SonntagsZeitung newspaper.

“There is around a 50 percent chance that Coop will take measures on other top brands,“ he said.

Coop’s black list is topped by Nivea lines from Beiersdorf and Danone products like Evian and Actimel.

Coop said it had given the manufacturers in question an ultimatum to respond by noon on August 11th.

“This deadline was reached without the respective companies showing readiness to pass their currency gains on to the customer“, said Peritz.

The delisted products have a sales volume of about 30 million francs ($38 million), Coop spokeswoman, Sabine Vulic, told the news agency SDA.

The manufacturers did not want to comment on the matter, according to SonntagsZeitung.

Supermarket giant Migros is also planning to take action. Herbert Bolliger, head of Migros, said in previous weeks that he was ready to ditch the products of manufacturers that would not agree to lower their prices.  

According to reports, the retailer is currently in negotiations with L’Oréal, Ferrero and Nivea producer Beiersdorf. A likely decision to take these products off the shelves will be taken next week at the earliest“, said spokesman Peter Naef.

According to Beiersdorf Switzerland head, Erhard Schöpfer, the demands of the retailer are “entirely unrealistic“. 

Switzerland’s government, meanwhile, is planning to tackle the consequences of the strong Swiss franc as a matter of urgency. Finance Minister Johann Schneider-Ammann has plans to strengthen the power of the Swiss Competition Authority (Wettbewerbskommission) as well as offering tax breaks for export and tourism.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

COOP

Major Swedish supermarket chain hit by cyberattack

One of Sweden's biggest supermarket chains said Saturday it had to temporarily close around 800 stores nationwide after a cyberattack blocked access to its checkouts.

Major Swedish supermarket chain hit by cyberattack
A Coop store in Stockholm. credit: Ali Lorestani/TT

“One of our subcontractors was hit by a digital attack, and that’s why our checkouts aren’t working any more,” Coop Sweden, which accounts for around 20 percent of the sector, said in a statement.

“We regret the situation and will do all we can to reopen swiftly,” the cooperative added.

Coop Sweden did not name the subcontractor or reveal the hacking method used against it beginning on Friday evening.

But the Swedish subsidiary of the Visma software group said the problem was linked to a mayor cyber attack on US IT company Kaseya on Friday.

Kaseya has urged customers to shut down servers running its VSA platform after dozens were hit with ransomware attacks.

A wave of ransomware attacks has struck worldwide recently, especially in the United States.

Ransomware attacks typically involve locking away data in systems using encryption, making companies pay to regain access.

Last year, hackers extorted at least $18 billion using such software, according to security firm Emsisoft.

In recent weeks, such attacks have hit oil pipelines, health services and major firms, and made it onto the agenda of US President Joe Biden’s June meeting with Russian counterpart Vladimir Putin.

SHOW COMMENTS