Retail tactics are beneath contempt

Generally speaking, I find the approach of UK supermarkets to their suppliers to be beneath contempt. It is more apparent with every passing month that this is precisely how they view the supply base that has bust its gut and, far too often, the bank, to provide them with their lofty perch.

This country’s leading food retailers built their reputations around the world by being sticklers for high quality, but also by being as fair as retailers could realistically be expected to be. They have clearly forgotten any principles they once held, and routinely demand the same standards for less money. They also revise the terms of programmes and increase over-riders at their whim, at a cost to the supply chain that runs into millions of pounds.

Understandably, no individual supplier is prepared to comment, but I have talked with frustrated category managers across the spectrum who simply cannot fathom the approach being taken by their customers, particularly during the most difficult economic period for 15 years.

This is not naivety - they all accept the legitimate business practice argument, as do I. But why should it be acceptable to threaten businesses and the careers and lives of thousands of people, simply to appease shareholders?

This has nothing to do with consumers and everything to do with puffing up the bottom line to keep the City analysts at bay. Anyone who claims otherwise is misinformed or a liar.

Are you listening Competition Commission?