Matalan squeezes suppliers
- Published: 19 August 2008 09:11
- Author: Ana Santi
- More by this Author
- Last Updated: 19 August 2008 09:21
- Reader Responses
Matalan has cut payment to suppliers by 2% for the second time since the value chain was taken private two years ago.
Matalan said the cut would help it to fund online developments, marketing campaigns and modernise its existing store portfolio according to The Daily Telegraph newspaper.
Matalan said in a statement: "This move, which was not introduced retrospectively and which sits alongside a supplier based consolidation programme, will help fund our expansion plans, the benefits of which we hope to share with our consolidated supplier base."
As a result, Matalan has been added to the Hall of Shame devised by the Forum of Private Business to identify businesses it claims are squeezing suppliers.
FPB chief executive Phil Orford accused Matalan of operating a policy of "blatant and sustained abuse by using its size and power to make more money at the expense of its supplier base."
