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Matalan squeezes suppliers

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.”

Readers' comments (2)

  • Get used to this everyone. The credit crunch means cost cutting is more important than ever so as well as jobs going in retail there will be yet more pressure on suppliers as we ride out this storm. There's very little anyone can do about this so why kick up a fuss?

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  • Matalan 2% cut is retrospective because it is being applied to invoices paid from 1st September. These will have been invoiced in August and prices negotiated back at the beginning of the year. This is in my opinion dishonest.

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