Aldi has extended immediate payment terms for small suppliers until the end of 2021.
It means suppliers whose turnover with the discounter is under £1m will continue to have payments processed as soon as invoices are submitted.
The discounter was one of a number of supermarkets to begin paying small suppliers immediately in March last year, to ease cashflow pressures during the pandemic.
Among the others, Tesco and Morrisons have already committed to continuing improved payment terms until the end of January 2021. Sainsbury’s told suppliers it was scrapping temporary immediate payment terms in July last year.
Aldi’s immediate payment terms are said to benefit more than 1,000 small British businesses in the supermarket’s supply chain.
The discounter has also committed to spending an additional £3.5bn a year with British suppliers by 2025 as it grows sales through estate expansion.
The business has a target of 1,200 UK stores by 2025, up from about 900 currently. The plan includes investing £500m in new and upgraded stores, distribution centres and its supply chain in 2021, creating over 4,000 jobs.
“We are expecting significant sales growth in 2021 as we open new stores and bring Aldi to more locations across the UK,” said Aldi UK CEO Giles Hurley. “With the vast majority of our grocery products now coming from British suppliers, our growth will lead to additional jobs and investment in our UK supply chain.”
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