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.