// Tesco extends improved payment terms for smaller suppliers to 2021
// The grocer will send payments to nearly 2000 suppliers immediately
Tesco has reportedly extended improved payment terms for its smaller suppliers until 2021 to help support businesses ride out the Covid-19 pandemic.
The Big 4 grocer will now immediately send payments to almost 2000 smaller suppliers instead of the usual 14-day term, until January 31, Retail Week reported.
Tesco said it hopes that smaller food businesses would “continue to be supported throughout the busy Christmas period and beyond”.
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Tesco chief product officer Andrew Yaxley said the retailer would support small suppliers at a time when the food sector is faced with uncertainty.
In early July, Tesco was criticised for demanding “offensive” discounts from suppliers.
It is now removing “disruptive” promotions in stores and focusing on everyday low prices as it faces increased competition from German discounters Aldi and Lidl.
It launched its Aldi Price Match scheme on 200 products in March and is extending that to hundreds more lines including branded products.
Tesco chief executive Dave Lewis said at the time that he had been in conversations with suppliers for the last six years and didn’t understand why consumers should pay more for Tesco than any other grocer.