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
" 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
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