Tesco, the UK’s largest retailer, told just-food today (20 October) that it is pushing its suppliers to reduce prices so that it can deliver value to UK customers.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“Our customers are facing tough times as a result of the current economic slowdown and they are looking to Tesco to help. We have already launched hundreds of new products but they also expect us to continuously negotiate the very best deals on their behalf. This is what we have been doing with some of our most significant suppliers this week,” a spokesperson for the company told just-food.
Over the past week, Tesco has contacted a number of suppliers to ask them to reduce prices, contribute to marketing expenses or change the terms of existing agreements in order to help the retail giant deliver low-cost products to UK shoppers.
According to reports, Tesco has approached food industry giants including HJ Heinz and Nestlé. But the company is believed to be targeting suppliers of all sizes.
Responding to criticism that Tesco is squeezing businesses already under pressure from high commodity and energy costs and declining consumer spending, Tesco defended the move.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“Commodity prices have started to fall easing the pressure a little on businesses and offering the opportunity for us to work with suppliers to do even more for customers,” the spokesperson commented.
