After a two-month hiatus, major retailers are now restoring Reckitt Benckiser inventories in their stores. Sources related to the development informed Hindustan Times that after multiple meetings and negotiations, Reckitt Benckiser has finally blinked and restored the original margins.
Earlier, retailers such as Future Group, Aditya Birla Retail and Spencer’s among other retailers stopped fresh orders after Reckitt Benckiser slashed the retailers’ margins in March.
“Margins have been re-worked. Reckitt initially negotiated to lower it and eventually restored to the original,” said a source with a retail firm.
Now, most retailers have started raising fresh purchase orders.
Another modern retailer connected with the development claims Reckitt Benckiser was forced to go back on its decision as the retailers did not budge from their demands. The retailers and manufactures claim that the input costs have gone up in the past, putting pressure on their margins.
Reckitt Benckisers’ products include Dettol, Harpic, Lizol and others. The company acquired Paras Pharma recently.
Reckitt did not respond to Hindustan Times’ questions.