Retailer Migros denies the excessive margin charge for organic products. A company spokesperson told the Keystone-SDA news agency that such a deal cannot be afforded given the tough competition situation.
On Friday evening, it was learned that the Swiss price watcher was prevented from publishing a report on alleged inflated prices for organic products. As reported by Swiss television SRF, the relevant page in Wednesday’s price watch bulletin was blank due to “legal clarifications”. According to “insiders”, Migros is said to have stopped broadcasting.
Consumer advocate: “highly explosive information”
According to Migros, the retailer is in contact with the price watcher. The company spokesperson does not want to say anything about the content of the swap. Price watcher Stefan Meierhans also does not want to comment in detail for now.
Sara Stalder, director of the Consumer Protection Foundation (SKS), told SRF that the price watcher’s report contains “highly explosive information that probably shouldn’t have been made public.”
Do additional costs for labeled products make a difference?
According to Migros, profit margins in retail are low. Migros’ current margin is 2.3 percent (profit on sales). On average, the gross margin for organic produce roughly corresponds to that of conventional food.
There may be differences depending on the product. The difference between producer prices and consumer prices in the label area can be explained by the higher processing and trading costs of labeled products. (SDA/no)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
