Watchdog welcomes Sainsbury”s U-turn

SAINSBURY”S HAS received a pat on the back from Britain”s consumer watchdog for its approach to squeezing longer payment terms out of suppliers.

The Office of Fair Trading lauded the retailer for entering into dialogue with suppliers after the change to terms was notified on Jan 6.

Although only a handful of the 900 suppliers concerned have raised objections, Sainsbury”s has promised not to hold off on the new terms pending mediation.

Robin Tapper, food and farming head at the NFU, said the retailer only changed its policy after pressure from the union and the Fresh Produce Consortium.

“We”re delighted the OFT has accepted what we told them and taken action to pressure Sainsbury”s to negotiate over its change in terms.

“Initially Sainsbury”s said these are the rules”, but following the OFT”s intervention, they”ve allowed suppliers to negotiate.

“We”re happy with the terms, as long as they allow suppliers to negotiate slightly different costs.”