Sub-retailing already exists in the UK, but in a very limited way. There are also some major issues behind extending it further: sub-retailing could be a massive retrograde step in terms of data visibility and copy management; a whole new set of retail terms will need to be negotiated and these will undoubtedly not be as high as the Sub-Agents would like or need; and it adds another level of complexity to an already complicated supply chain. All in all, sub-retailing looks to be more of a short-term, sticking plaster fix for a limited number of smaller retailers rather than a fundamental structural change to make the supply chain fit-for-purpose for an uncertain and fast-changing future.
A more detailed analysis of sub-retailing is contained in the latest issue of the “Wessendenbriefing” newsletter. For a free sample issue which contains the full article, simply email firstname.lastname@example.org