Morrison’s look to suppliers for support
November 2009
Supermarket chain Morrison’s are believed to be seeking additional support from its suppliers with special offers and promotions as competition in the grocery sector reaches a new level of intensity.
An article in the Financial Times suggests that suppliers are expecting for some significant negotiations over the coming weeks.
The Supermarket chain have highlighted that their new management team led by Marc Bolland are keen to see both sales and profits expand.
One supplier is quoted as saying that the move reflects concerns that the grocer was falling behind rivals in terms of promotional activity, which is part funded by their suppliers.
Michelle Williams from Artemis Solutions Group who specialise in the retail sector comments “It is standard practice for supermarkets to look to maximise contributions from suppliers in part if not in full”
A spokesperson from Morrison’s comments: “We are strong supporters of British producers and farmers, and we have always enjoyed good relationships with our suppliers. Any recent negotiations have been part of business as usual.”
