Marks & Spencer has extended hundreds of suppliers’ payment terms by 15 days to 75 days.
The retailer told its 500 general merchandise suppliers – of which 75 are based in the UK – that it would be changing terms, bringing the company “in line with industry standards”. The increase will come into effect early next month.
John Dixon, M&S’s executive director for general merchandise, wrote to suppliers informing them of the change.
According to Sky News, Dixon’s letter was sent alongside a separate note outlining the availability of a vendor financing scheme, through which HSBC and Royal Bank of Scotland provide immediate payments to suppliers in exchange for a substantial discount.
An M&S spokeswoman told Sky: “We are always looking at ways to ensure we are running our business efficiently and that it is well set up for the future. As part of this, we are extending our GM supplier payment terms to bring us in line with industry standards.”