Sainsbury’s toughens supplier terms
Extra four weeks on credit terms
Sainsbury’s has told suppliers it is adding an extra four weeks to the time thay can expect to receive payment, as the supermarket group continues to invest in lower prices to consumers.
The [i]Guardian[/i] reports that Sainsbury’s has written to 1,400 suppliers extending its payment terms. A spokeswoman for Sainsbury’s said that suppliers had previously benefited from terms better than those offerd by its rivals, and “we needed to bring ourselves into line with our competitors and industry norms.”
While the new terms are said to be non-negotiable, she added: “We are working with our suppliers to ease any problems that they may face as a result of going onto the new terms. We will do all we can to help”.
Sainsbury’s current advertising campaign highlights price reductions implmented over the past year, a key element of the recovery strategy launched by chief executive Justin King.
