Guernsey Press

No low milk prices as shops wait and see

FALLING milk prices and special deals are unlikely to greet customers in many local shops following the lifting of price restrictions due to the tiny – almost non-existent – profit margins, it has been warned.

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Scott Cockburn, who co-owns both the Paperbox and Candy Shop in Town, said it would prove very difficult for any of the smaller and independent stores to slash its milk prices, when they currently make only pennies on each sale.

He said his shops currently made just 4p profit on a half-litre at his stores and they also had to taken into account all the cartons that went unsold and out-of-date.

His warning came as larger supermarkets, which are most likely to slash prices and even introduce milk as a loss leader item – where it is sold below cost price – held off announcing any priceing changes and waited to see if anyone else made the first move.

Mr Cockburn, pictured, said that for smaller retailers it was just not viable to offer big price drops and 'buy one, get one free' offers.

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