Sir; As a subscriber to The Grocer and also a supplier of three of the major multiples, I was very interested to read the article in last week’s edition (‘Multiples ‘rip up’ the code’, The Grocer, February 5, p4).
The request for one supplier to cut prices by 3% particularly attracted my attention, since we have been asked by Somerfield to cut prices by 5%. The proposal has been based on Somerfield’s projected growth figures following the complete integration of the 114 stores it acquired from Morrisons.
Agreeing to this request will make our business considerably less profitable, and we see it as unreasonable.
We are at the stage of negotiating alternative terms with Somerfield at the moment.