+33 680 38 14 46
Supermarkets 'consider alternative suppliers'
United Kingdom
Thursday 18 December 2008
Some of the UK's biggest chain stores have created emergency plans in case supermarket suppliers fold as a result of the economic downturn.
Retailers including Asda and Tesco have drawn up contingency plans because their suppliers are under growing pressure during the recession, according to the Observer.
Tesco said it is supporting suppliers by informing them of future orders.
A spokesman said: "The worst thing for a supermarket is for a supplier to go under, because you are left with a big hole and investing in a new one is a big deal."
Asda has been examining its supplier base and looking at potential alternatives should firms collapse.
The Gap Partnership this month said supermarkets have to create more constructive relationships
Retailers including Asda and Tesco have drawn up contingency plans because their suppliers are under growing pressure during the recession, according to the Observer.
Tesco said it is supporting suppliers by informing them of future orders.
A spokesman said: "The worst thing for a supermarket is for a supplier to go under, because you are left with a big hole and investing in a new one is a big deal."
Asda has been examining its supplier base and looking at potential alternatives should firms collapse.
The Gap Partnership this month said supermarkets have to create more constructive relationships
with their suppliers, after Tesco came in for criticism over changes it made to some contracts.
This weekend, Woolworths' administrator Deloitte said 700 jobs will be lost at Entertainment UK, which supplied CDs and DVDs to supermarkets including Asda and Sainsbury's.
This weekend, Woolworths' administrator Deloitte said 700 jobs will be lost at Entertainment UK, which supplied CDs and DVDs to supermarkets including Asda and Sainsbury's.
