Small suppliers have reported thawing relations with the big four, as it emerged this week Asda has cut payment times to as little as 20 days.
One supplier, whose payment time was cut, said the improvement in terms was a "massively welcome" move, as previously he had been paying his own suppliers before receiving payment from Asda. The move had been unprompted, he added, as he had not requested a change in terms.
Another supplier, who recently held pricing talks with the retailer, said that although negotiations were still robust, Asda and other retailers had become more sympathetic to suppliers' difficulties.
"Asda in particular seems very concerned some of its smaller suppliers may fold," he said. "It's worried about empty shelves - and replacing some own-label lines could take up to six months - so is starting to ease some of the pricing pressure."
Suppliers also said Tesco had softened its negotiating position and several reported reaching compromises with the retailer over marketing charges. One said he had refused to make a new contribution towards promotions and Tesco had accepted that.
A spokeswoman for Tesco denied there had been a change in position, and said Tesco had always intended its change of terms to be subject to negotiation. "However, this doesn't mean we won't continue to do what's right for our customers, too."
An analyst noted the big retailers were keen to avoid consolidation among their suppliers, so "there will come a point when they will work harder to support some of their suppliers".
One supplier, whose payment time was cut, said the improvement in terms was a "massively welcome" move, as previously he had been paying his own suppliers before receiving payment from Asda. The move had been unprompted, he added, as he had not requested a change in terms.
Another supplier, who recently held pricing talks with the retailer, said that although negotiations were still robust, Asda and other retailers had become more sympathetic to suppliers' difficulties.
"Asda in particular seems very concerned some of its smaller suppliers may fold," he said. "It's worried about empty shelves - and replacing some own-label lines could take up to six months - so is starting to ease some of the pricing pressure."
Suppliers also said Tesco had softened its negotiating position and several reported reaching compromises with the retailer over marketing charges. One said he had refused to make a new contribution towards promotions and Tesco had accepted that.
A spokeswoman for Tesco denied there had been a change in position, and said Tesco had always intended its change of terms to be subject to negotiation. "However, this doesn't mean we won't continue to do what's right for our customers, too."
An analyst noted the big retailers were keen to avoid consolidation among their suppliers, so "there will come a point when they will work harder to support some of their suppliers".
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