THOMSON chief operating officer Peter Rothwell has confessed
its controversial no-discount policy backfired and created tense relations with
in-house retailer Lunn Poly.
Rothwell has publicly backed managing director Shaun Powell,
the architect of the common-sense pricing initiative, following speculation
over his future.
But he admitted Powell has put himself in a difficult
position and put the business at a competitive disadvantage.
“Shaun took ownership of the policy and it’s clear he has
left himself exposed,” said Rothwell.
“He tried and failed and I cannot claim that Thomson has
come out of this well.”
Despite Powell’s honourable efforts, it had become “impossible”
to sell its non-discounted product against a barrage of offers from rivals,
said Rothwell.
“But we are standing by Shaun and there are no plans to
replace him,” he stressed.
Thomson’s credibility was left in tatters after abandoning
its policy just three weeks after the summer 2002 went on sale. It raised offers
to 15% and then 25% as it attempted to claw back lost ground.
However, Rothwell praised Powell for increasing the number
of higher-value sales.