Having deservedly received plaudits for its sponsorship of the Olympic and Paralympic games, Sainsbury's is suddenly the bad boy in the class of British retailing. The Forum for Private Business (FPB) has put the British supermarket chain in the "hall of shame" following claims that the retailer has written to its non-food suppliers saying that it will now pay them 75 days after it "accepts ownership" of goods.
This news has caused consternation, not only with suppliers, but with the British consumer after the story's coverage in the Daily Telegraph, whose readership of 560,000 includes many Sainsbury's customers.
Phil McCabe of the FPB told the Telegraph, "In moving from 30 to 75 days, Sainsbury’s is imposing a massive 150pc increase in the time it takes to pay – this is simply unacceptable. There has been no real consultation – a letter to suppliers telling them it is happening does not count, and the excuse that this is in line with 'industry standards’ is just laughable. That is why we are naming and shaming Sainsbury’s in our late payment hall of shame."
There will be no gold medals for Sainsbury's on this one. (19 Oct)
© 2012 - ESM: European Supermarket Magazine
