Tesco is facing a revolt from its construction suppliers after the UK’s largest retailer reportedly attempted to cut its prior agreed fees by up to 40 per cent.
The retailer's building contractors, consultants and engineers have lodged a flood of complaints after Tesco attempted to lower prices citing lower land and material costs meaning stores can be built cheaper, reports the Daily Mail.
The Association for Consultancy and Engineering (ACE) said it has been inundated by complaints from its members in the construction sector.
ACE chief executive Nelson Ogunshakin said: “In the current economic climate there is obviously pressure on costs for all businesses.
“However, clients forcing construction suppliers to make swingeing cuts in their fees for delivering the same services is a pretty naive and short-sighted move.”
Tesco plans to spend £1.5 billion opening around 225 stores this year, in addition to its 2,282 existing outlets.
Tesco said it was in discussion with suppliers and was dealing with complaints on a ‘case-by-case’ basis.
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