Company chief predicts discounting is here to stay

Company chief predicts discounting is here to stay

THOMSON chief executive Charles Gurassa has predicted discounts are here to stay for the foreseeable future after admitting that attempts to move away from the policy had failed.

“I’d love to get to a position where we don’t rely on discounts but every time we’ve tried to move away from them, we have suffered,” he told the conference.

“Big discounting will be part of the January campaign. I will hold my hands up and say I can’t see another way forward.”

He dismissed any suggestions to meet competitors and agree a no-discount policy. It’s a great idea but that would be a cartel.

He also said he had a vision for a single-edition brochure with “dynamic pricing.”

“You need a doctorate to work out the price at the moment,” he added.

During the interview with moderator Alastair Stewart, Gurassa said there was a limit to the amount of directional selling through its retail network.

“Clients will say enough is enough,” he said.