TESCO accused by suppliers of making “aggressive” demands

According to reports in The Sunday Times, Tesco is locked in a battle with suppliers after allegedly demanding one-off cash payments and keener terms to help fund its price war with Asda and discounters Aldi and Lidl.

 One supplier, who refused to be named,
said that during a 40 minute meeting he was handed a document with
the new terms Tesco was suggesting to maintain its profit margins
which had no Tesco heading or logo. The supplier said he had been
given a deadline of 2 November to agree to the new terms. A spokesman
for Tesco said: "Our customers are facing tough times as a
result of the current economic slowdown and they are looking to Tesco
to help. They 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." Tesco refused to comment
on details of its talks with suppliers or the demands it was
allegedly placing on them.