Speaking at Retail Week's Managing Rising Costs in Retail conference, FPB chief executive Nick Goulding said: 'Big name retailers are abusing their purchasing power at the expense of their suppliers.
'It is becoming all too common for changes in payment terms to be introduced by retailers looking to increase their profit margins. Suppliers are left with little option but to accept the changes for fear of losing orders if they don't.'
The FBP has cited a further 21 large retailers of abusing their purchasing power and squeezing suppliers out of business. Retailers include Argos, Bhs, B&Q, Homebase and Selfridges.
In particular, Goulding said the high street chain Matalan's actions have been disappointing.The FPB is representing its 25,000 UK members in a high-profile dispute with Matalan.
He said: 'In November last year, Matalan decided it would deduct two per cent from all orders in the second half of the year. Suppliers who didn't agree to the deduction have been left with a black hole in their accounts. This isn't cost cutting, this is passing the buck down the supply chain.'
Goulding believes that the latest additions to the list demonstrate that the trend is accelerating. He said: 'It's time for retailers to take a responsible approach to dealing with their suppliers. If the big names of the high street need to increase their profit margins, they should start by looking at their own inefficiencies.'
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