Tesco: Rebuilding relationship with suppliers
The supermarket group has created the Tesco Supplier Network, which it claims will help 5,000 members to communicate with the retailer and other suppliers about a broad range of issues, potentially providing the platform for suppliers to complain about how they are being treated.
Tesco's new chief executive, Dave Lewis, has pledged to overhaul the company's relationship with suppliers after a slump in sales and the discovery of a £263m accounting scandal. Tesco has been heavily criticised for its tough tactics when dealing with suppliers in the past.
Shares in the company have risen 35pc in the past month as investors have reacted positively to Mr Lewis's plan.
David McCarthy, an analyst at HSBC, said: “The Christmas trading statement confirmed our belief that momentum is building, with investments in quality, service and price delivering results. Some of the factors which hurt Tesco and aided discounters in recent years are reversing. Consumers are better off, while Tesco is combating the discounters more effectively. If Tesco had followed the right strategy several years ago, the discounters would have a smaller share today than they did in 2008, in our view.”
Jason Tarry, Tesco's new commercial director said: “This new community of Tesco teams, suppliers and producers from around the world gives us the opportunity to improve communication, share ideas and continually improve the products that our customers enjoy. The network will play an integral part in our partnerships with suppliers to deliver for our customers.”
Source: telegraph.co.uk
