The LEGO Group will no longer be offering more favourable prices to physical retailers, following encouragement from the the German Federal Cartel Office. Retail Detail report that the legality of the LEGO Group’s discount system was in question, which rather than having fixed wholesale prices for products sees different retailers offered different discounts from the RRP (Recommended Retail Price). In the case of online retailers, the discount offered has been smaller. Now, all retailers will be on ‘an equal footing’.
The retail industry has been shaken by the growth in shopping online that has occurred over the past twenty years, which over the last decade has seen increasing discounts on the price of products. Lower overheads and looser regulation that physical retail outlets has allowed online sellers to offer lower prices, but to mitigate the impact, many companies offer better prices to retailers with a physical component.
The LEGO Group’s decision applies in Germany, whether any change is rolled out across other European territories remains to be seen.