Self-proclaimed 'champion' Waitrose accused of upping pressure on suppliers |
Julia Taylor, The Grocer 14 February 2009 In: Retailers, Industry news
| |
Waitrose is increasing pressure on its suppliers, demanding deep discounts and promotions despite promising to be their "champion" just three months ago.
Suppliers have told The Grocer the retailer has toughened its negotiating position in recent weeks, a move thought to have followed a reshuffle of the Waitrose buying teams.
One supplier said the retailer, which promised producers in November that it was reinforcing its commitment to brands, "hasn't lived up to expectations".
"In the past couple of weeks its attitude has changed," he said. "I've been asked to go into a couple of meetings where they've demanded price reductions. Also, I don't know if it's just the time of year, but buyers are uncommunicative. You end up chasing them for weeks."
Other suppliers said the retailer is being "firmer than usual", and was demanding discounts as well as heavily penalising any mistakes they made. One supplier told The Grocer: "Buyers just want to cut to the chase now – how much margin they are going to get out of the stock. With a company like Waitrose you wouldn't have expected that. I think buyers are under more pressure. They are very price and promotion-focused," he added.
A Waitrose spokesman defended the new stance: "In a challenging economic climate it is essential for the growth of Waitrose and our suppliers that we work together to provide a compelling offer for our customers. In line with our legacy of responsible supplier relationships, we are working to achieve this in a fair and mutually beneficial way."