// Tesco buyers are understood to be backtracking after facing backlash from suppliers over plans to introduce a new fulfillment fee
// The supermarket giant is attempting to soften earlier threats that suppliers could face range reviews for non-compliance
Tesco buyers are said to be “furiously backtracking” following a backlash from suppliers over its plans to introduce a new fulfilment fee.
The supermarket giant is understood to be continuing attempts to soften an earlier suggestion that suppliers could face range reviews or reduced prices if the refused to comply, The Grocer reported.
Earlier this month, Tesco wrote to suppliers of its intent to introduce new fees to help cover the growing costs of operating online.
It later said that none of its suppliers would be delisted if they refused to agree to the new fees.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
Sentinel Management Consultants chief executive David Sables told the publication: “At Tesco buyer level there has been an awful lot of backtracking going on.”
“There have been plenty of buyers trying to duck out of conversations or saying I’ll refer your concerns to senior management.”
Another source said: “From what I’ve picked up from suppliers, Tesco’s buyers have been stressing that to them, margin is more important than securing this new fee.
“That adds to the theory that this was a way for them to start a conversation, an opening gambit, not the end game.”
Earlier this month, The Groceries Code Adjudicator launched a probe into the supermarket’s new policy over concerns it breaches the Groceries Supply Code of Practice.
Click here to sign up to Retail Gazette‘s free daily email newsletter
