Major Supermarket gets tough with suppliers

Reports today ascert that a major Supermarket chain has treated suppliers poorly, cutting their profit margin as paying low sums for produce. So why do suppliers continue to deal with such difficult customers and how will this affect the end user longer term?

I would always argue that suppliers always have a choice, who they trade with and whether to continue in such a difficult market. How there is an ethical and "fairness" that should be adhered to by the large Supermarket chains, otherwise the suppliers will fall away, perhaps into formal insolvency. In turn this will result in less choice for consumers and perhaps a reduction in quality.

It is not uncommon for the "small guy" to suffer, as thry do not have the financial muscle to take on the large corporate outfits. At Business Rescue & Recovery we help small business in financial difficulty and can provide in house corporate turnaround and restructuring options.

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