Supermarkets have been urged to ensure that relations with their suppliers are “less adversarial” after Tesco posted subdued sales growth.
The Gap Partnership, a business negotiating help group, said that tensions between suppliers and retailers will continue to be tense while shops pass on consumer price cuts in the recession.
Managing partner Steve Gates said: “Price is an important negotiating point, but it is not the only one. Both sides should focus on other variables such as storage, delivery and promotional investment.
“By adopting more creative negotiation strategies that focus on delivering value for all parties, both supermarkets and their suppliers can continue successfully to work together in these difficult trading conditions.”
In recent months Tesco has come in for criticism for altering its payment terms with some suppliers.
And the National Farmers’ Union said in November that supermarkets are continuing to “beat up” suppliers.
