John Lewis is the latest retailer to have emerged as squeezing its terms, with the department store demanding a “growth rebate” from suppliers.
According to The Telegraph, suppliers are being hit by a rebate of between 0.75% on their annual invoices with John Lewis if their sales grow by between 5%-9.9%, up to 5.25% if sales grow by more than 50%.
In the letter sent to around 130 suppliers and seen by the newspaper, John Lewis explained it had provided a “platform for growth”, which had benefited suppliers “from increased profits levels through efficiencies provided from the increase in volumes”.
The letter added: “It is therefore essential that the collaboration shown to date is continued and that John Lewis and its suppliers share the benefit created from these significant growth opportunities.”
A Forum spokesman said suppliers were “effectively having their pockets picked by John Lewis on the back of strong trading”