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Asda reassures suppliers over payment terms

Asda has reassured suppliers that its payment terms and conditions have not changed following a letter stating that new payment terms for the supermarket were 60 days.

The letter stated the new payment terms of 60 days would cover “anything [the supermarket] buys from [suppliers] to sell to [its] customers”, including Asda’s clothing arm George. It is understood that previous payment terms varied with some suppliers on a 30-day payment contract.

However the supermarket has told Drapers that any pre-existing agreements with suppliers are unaffected.

A spokeswoman said: “In terms of the Terms and conditions - payment terms in both our old and new conditions remain the same and existing arrangements with our suppliers remain unchanged. We have updated our standard T&Cs s to make them easier to understand – they are shorter and simpler than the previous conditions.”

Asda advised any supplier with concerns to contact the supermarket.

@jillgeoghegan

Readers' comments (1)

  • The Government cannot enforce terms as they will restrict options to trade.
    It is always the case that the big buyer tells the little supplier what to do.

    Unsuitable or offensive? Report this comment

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