Thomson admits no-discount policy failed

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.