Supermarkets: no more Mr Bad Guys?
The huge number of shoppers visiting their stores – Tesco makes more than £1bn a week in sales – mean tight margins work. Unlike traditional booksellers, supermarkets pass on to customers the majority of their trade discount. Their mark up is typically 20% or less, compared to 50% to 120% in the traditional trade. For supermarkets, a 20% profit is healthy when compared to core food product, whose profit margins are measured in single percentage points. More shocking for most authors will be the knowledge of how marginal books are for supermarket. They represent only 0.3% of Tesco’s total UK sales. That is not a misplaced percentage point.