Kapitalism

[AtW]

Sainsbury's questioned by accounting watchdog over income disclosures

" Payments demanded by supermarkets from suppliers are thought to contribute billions of pounds to profits to the industry each year.

Supermarkets can charge suppliers an overrider, which is a percentage when the grocer hits sales targets, akin to an annual bonus. "

Suppliers are also charged “listing fees” when a supermarket puts a product on sale in the first place and further “trigger” charges can be added if the supermarket puts that product on promotion, thereby driving a spike in sales. If a supplier is able to sell more of its goods into the supermarkets, it is also charged a loyalty bonus.

Supermarket sources suggested that Sainsbury’s was unwilling to disclose its full supplier income as it would reveal its charges and highlight that it was too heavily reliant on promotions to sell stock.

Duncan Swift, insolvency partner at accountancy firm Moore Stephens, explained that £1 collected from suppliers is worth around £15 collected from the tills. "

Source: Sainsbury's questioned by accounting watchdog over income disclosures - Telegraph

Just how fooked up this is - suppliers have to PAY supermarket all sort of fees, WTF?!?!?!

It's obvious that IF supermarket can dictate such terms then they wield way too much power over suppliers, so anti-trust measure should kick in straight away. Frankly it should not be legal to do this tulip.

Kapitalism

[xoggoth]

It's obvious that IF supermarket can dictate such terms then they wield way too much power over suppliers, so anti-trust measure should kick in straight away. Frankly it should not be legal to do this tulip.

Totally agree aTw. Capitalism should be about earned merit not exercise of power. Should be limited by government.

[tomtomagain]

Kapitalism

So what are you suggesting as an alternative? Kommunism?

[meridian]

I've contracted within large FTSE100 manufacturing/FMCG companies, and the large retailers have all the power even in these relationships. This is only news to the masses, not to those that supply the supermarkets.

[AtW]

So what are you suggesting as an alternative? Kommunism?

What I am suggesting is that supermarkets should have no power (meaning it should be totally jailable to try it) to make suppliers PAY THEM to sell products supplied by said suppliers.

Not a lot is it?

[original PM]

What I am suggesting is that supermarkets should have no power (meaning it should be totally jailable to try it) to make suppliers PAY THEM to sell products supplied by said suppliers.

Not a lot is it?

Yes but this is a free market economy.

See the key thing is no one is forcing anyone to sell to supermarkets.

[DodgyAgent]

It is an example of how capitalism morphs into corporatism which is just socialism that is run by corporates rather than governments.

[FatLazyContractor]

It is an example of how capitalism morphs into corporatism which is just socialism that is run by corporates rather than governments.

What about Orgasm?

[DodgyAgent]

What about Orgasm?

ask the wife

[SpontaneousOrder]

Sainsbury's questioned by accounting watchdog over income disclosures

" Payments demanded by supermarkets from suppliers are thought to contribute billions of pounds to profits to the industry each year.

Supermarkets can charge suppliers an overrider, which is a percentage when the grocer hits sales targets, akin to an annual bonus. "

Suppliers are also charged “listing fees” when a supermarket puts a product on sale in the first place and further “trigger” charges can be added if the supermarket puts that product on promotion, thereby driving a spike in sales. If a supplier is able to sell more of its goods into the supermarkets, it is also charged a loyalty bonus.

Supermarket sources suggested that Sainsbury’s was unwilling to disclose its full supplier income as it would reveal its charges and highlight that it was too heavily reliant on promotions to sell stock.

Duncan Swift, insolvency partner at accountancy firm Moore Stephens, explained that £1 collected from suppliers is worth around £15 collected from the tills. "

Source: Sainsbury's questioned by accounting watchdog over income disclosures - Telegraph

Just how fooked up this is - suppliers have to PAY supermarket all sort of fees, WTF?!?!?!

It's obvious that IF supermarket can dictate such terms then they wield way too much power over suppliers, so anti-trust measure should kick in straight away. Frankly it should not be legal to do this tulip.

Kapitalism

Wha's the issue here? Presumably suppliers want this, otherwise they wouldn't do it.