Sainsbury’s has denied reports claiming it has backed down in a row with suppliers over payment terms.
The supermarket had been looking to lengthen the time it took to pay its suppliers, but more than a hundred fresh produce suppliers initially challenged the plan.
Reports in the Telegraph said the retailer had backed down and was dropping the demands rather than end up in a public dispute.
However, a spokeswoman for Sainsbury’s said it disagreed with the article and the comments made: “We’re not backing down, we’re attempting to take a flexible approach, but we remain committed to getting all our suppliers onto the standard terms.”
She said it is negotiating with the suppliers and the initial number who objected had now fallen to just 38, which are still to sign up to the plan.
The row was sparked when Sainsbury wrote to 1,900 of its suppliers to inform them it was standardising payment terms across its supply base. This meant many suppliers would move from being paid in around 21 days to up to 45 days.
The retailer denied it had no intention of going to mediation on the issue. The spokeswoman said: “We’re convinced we’ll reach an agreement with all our supplier before it gets to that stage, so we don’t believe it will be necessary.” However she said it would use mediation if necessary.
Nigel Jenney, chief executive of the Fresh Produce Consortium, which represented its supplier members involved in the dispute, said: “FPC is pleased to note that Sainsbury's and its suppliers appear to be coming to a mutually acceptable agreement with regard to their payment terms.”
