The China headquarters of French retail giant Carrefour has denied claims that it charges additional and unfair fees to local suppliers.
Go deeper with GlobalData
According to a report in the China Business Times last week, some seed and nut suppliers in Shanghai have stopped supplying local Carrefour stores because of a dispute over additional fees, reported AFX Asia.
The report claimed Carrefour has been charging additional fees to suppliers, meaning suppliers’ sale costs account for more than 50% of their total production costs, resulting in a loss to some suppliers.
It went on to say talks between the Shanghai Roasted Seeds and Nuts Association, on behalf of its supplier members, and Carrefour had broken down, resulting in the suppliers deciding to suspend deliveries to Carrefour
Carrefour said it does not charge an “initial” entry fee to suppliers and that it signed agreements with suppliers to charge additional service fees on an equal and voluntary basis.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe French retailer also said that not all 11 members of the association had stopped supplying local Carrefour outlets and that many of them have already signed 2003 supply contracts with the retailer.
