A business owner has called on the Competition Commission (CC) to extend its new law to prevent supermarkets from retrospectively adjusting their terms of supply beyond the grocery sector.
Martin Williams, managing director of information provider Graydon UK, said the move to protect small suppliers should be applied throughout the retail sector.
“The report is fantastic news for those suppliers who have previously been subjected to widespread bullying by supermarkets,” said Williams.
However, he warned that while there is little doubt the ‘big four’ have been guilty of making retrospective adjustments to the terms of supply without consultation; the government needs to go further.
“It’s only a matter of weeks since Boots kicked its suppliers in the teeth with the news it was unilaterally extending its payment terms to 75 days from the end of the month in which suppliers’ invoices were issued,” he said.
“BHS, B&Q and Debenhams are also among the high street names who have arbitrarily enforced lengthened payment terms upon suppliers in recent times.”
However, Williams said he welcomed the CC’s move to ensure retailers are required to keep written records of all agreement with suppliers on terms of supply.
"If the new recommendations protect suppliers in their relationships with the supermarkets, it's surely only a logical extension that they should protect relationships with all other major retailers too,” he added.
© Crimson Business Ltd. 2008
