Percy Pig’s US Launch Faces Uncertainty Amid Trump Tariffs
Marks & Spencer’s popular confectionery brand, recently launched in Target stores, may encounter pricing challenges due to imminent tariffs on UK imports.
Marks & Spencer (M&S) is reassessing the future of its confectionery brand Percy Pig in the United States in light of newly announced tariffs by the Trump administration.
The brand, described by M&S chair Archie Norman as the retailer’s 'gift to America', debuted on March 30 in Target stores and on the Target website.
Despite the enthusiastic reception, concerns have emerged that tariffs imposed on UK imports may affect pricing and, consequently, sales.
Recently, President Donald Trump announced a sweeping set of tariffs, including a 10% tax on imports from the UK, which could impact the cost structure for M&S's popular sweets.
While the company is not planning to withdraw Percy Pig from the market, Norman acknowledged that they may need to adapt their strategy if the tariffs drive prices up, potentially diminishing their appeal to consumers.
In addition to tariff concerns, M&S is also rethinking its marketing approaches in response to new UK regulations concerning advertisements for foods high in fat, sugar, and salt (HFSS).
The UK government has mandated that junk food advertisements will be banned from airing before 9pm on television starting October 2025, aiming to combat childhood obesity.
Norman expressed doubt about the viability of running traditional Christmas advertisements that showcase holiday foods such as Christmas pudding and mince pies, which may fall under the new restrictions.
He indicated that the advertising landscape will be complicated, stating, 'It probably means we can’t run our Christmas ad.' Norman highlighted that while M&S's clothing and homewares segments remain unaffected by the new rules, adaptations of advertising strategies will be necessary, possibly leading to a version that aligns with regulatory requirements.
Amid these challenges, Norman called attention to the broader implications of recent regulatory changes, stating that while M&S is equipped to handle these shifts, smaller retailers may face significant difficulties.
He commented on the complexity introduced by loyalty programs, noting a shift away from special pricing for cardholders in favor of personalized communications through the M&S Sparks scheme.
Norman also remarked on the online grocery sector, describing it as 'a desert of profit' and referencing substantial financial losses experienced by various fast-track delivery firms.
While he emphasized M&S's commitment to its partnership with Ocado, he warned of the significant challenges within the food retailing sector as it adapts to changing market dynamics.
The brand, described by M&S chair Archie Norman as the retailer’s 'gift to America', debuted on March 30 in Target stores and on the Target website.
Despite the enthusiastic reception, concerns have emerged that tariffs imposed on UK imports may affect pricing and, consequently, sales.
Recently, President Donald Trump announced a sweeping set of tariffs, including a 10% tax on imports from the UK, which could impact the cost structure for M&S's popular sweets.
While the company is not planning to withdraw Percy Pig from the market, Norman acknowledged that they may need to adapt their strategy if the tariffs drive prices up, potentially diminishing their appeal to consumers.
In addition to tariff concerns, M&S is also rethinking its marketing approaches in response to new UK regulations concerning advertisements for foods high in fat, sugar, and salt (HFSS).
The UK government has mandated that junk food advertisements will be banned from airing before 9pm on television starting October 2025, aiming to combat childhood obesity.
Norman expressed doubt about the viability of running traditional Christmas advertisements that showcase holiday foods such as Christmas pudding and mince pies, which may fall under the new restrictions.
He indicated that the advertising landscape will be complicated, stating, 'It probably means we can’t run our Christmas ad.' Norman highlighted that while M&S's clothing and homewares segments remain unaffected by the new rules, adaptations of advertising strategies will be necessary, possibly leading to a version that aligns with regulatory requirements.
Amid these challenges, Norman called attention to the broader implications of recent regulatory changes, stating that while M&S is equipped to handle these shifts, smaller retailers may face significant difficulties.
He commented on the complexity introduced by loyalty programs, noting a shift away from special pricing for cardholders in favor of personalized communications through the M&S Sparks scheme.
Norman also remarked on the online grocery sector, describing it as 'a desert of profit' and referencing substantial financial losses experienced by various fast-track delivery firms.
While he emphasized M&S's commitment to its partnership with Ocado, he warned of the significant challenges within the food retailing sector as it adapts to changing market dynamics.
