• It follows similar measures by Morrisons two weeks ago and Tesco last week

  • More than 1,500 small businesses will benefit from quicker payment from the retailer

  • It is also offering tenants and concession partners the opportunity to pay rent on a monthly basis as opposed to quarterly in advance


Sainsbury’s has committed to making immediate payments to small suppliers to ease cashflow pressures during the coronavirus outbreak. The supermarket said support would also be available to suppliers in financial distress as a result of the ongoing uncertainty.

It is the latest supermarket to slash payment terms for suppliers in response to the pandemic, with Morrisons announcing measures two weeks ago and Tesco following suit last week. Aldi also yesterday announced immediate payment terms for small suppliers. 

“Sainsbury’s is pledging support to suppliers and partners that help to feed the nation in these challenging times,” a statement from the retailer said. “Sainsbury’s will work collaboratively with suppliers to support them with vital cashflow where needed.”

The supermarket said the move would help businesses increase production volumes quickly to meet high customer demand.

More than 1,500 small businesses, with an annual turnover of less than £100,000, would benefit from quicker payment.

Sainsbury’s is also encouraging suppliers in financial distress as a result of the virus to email its supplier support team at or speak to their regular contact to discuss criteria for help.

As part of today’s measures, the supermarket is extending its support to property tenants and concession partners.

As a first step, the company is offering all tenants the opportunity to pay rent on a monthly basis as opposed to quarterly in advance. It is expected that 250 tenants and concession partners will benefit from the new arrangements.

”We want to support our suppliers and partners because it is vital that we all help each other during this challenging time,” said Sainsbury’s commercial director Paul Mills-Hicks.

“The businesses we work with are working flat out to supply us with product and going above and beyond to deliver direct to our stores. I am so proud to be working alongside them to feed the nation and we will do all we can to help.”

Aldi said it was it reducing payment terms so that any supplier with a turnover of less than £1m would be paid immediately. Over 1,000 suppliers will benefit, according to the discounter.