Sainsbury’s and Aldi have become the latest supermarket retailers pledging to reduce the time it takes to pay smaller suppliers during the coronavirus crisis.
Following similar recent moves by Morrisons and Tesco, Sainsbury’s said today that it would assist nearly 1,500 smaller suppliers who have less than £100,000 annual turnover with it by paying them immediately. The firm will also make finance available to help suppliers increase production volumes and manage cash flow.
“We want to support our suppliers and partners because it is vital that we all help each other during this challenging time,” said Commercial Director Paul Mills-Hicks.
Meanwhile, Aldi will reduce payment terms so that any supplier with a turnover of less than £1m will now be paid immediately. This is expected to benefit over 1,000 of its suppliers.
The discounter also announced yesterday that it was giving its store and distribution staff a 10% bonus in recognition of their efforts to keep shelves stocked in recent weeks.
And it joined other retailers in introducing new measures to encourage social distancing and to protect its staff. These include installing clear screens at checkouts and laying out two-metre markers on the floors of stores to encourage people to stay apart. It has also reduced opening hours so that staff have the chance to re-stock products while stores are empty.
NAM Implications:
- Cash-rich grocery retailers are setting a welcome new payments norm…
- (that will impact retailers in other categories)
- BTW, medium and larger sized suppliers are hurting also…
