Tesco has asked all of its non-food suppliers to wait for an extra 30 days for payment as it attempts to free up money in the build-up to the festive period.
Finance director Eammonn O’Hare said in a letter that the decision came after a review with the aim of “improving consistency, transparency and efficiency” down the non-food supply chain, reports the Financial Times.
A spokesman said: “We have written to suppliers to seek their agreement to the change and hope to implement it before the end of the year.
“This is a move to align payment terms for our larger non-food suppliers across the Tesco group which currently vary from country to country and within product categories.”
According to the supermarket, the move is not an attempt to free up more cash but is just part of its global review.
Tesco allegedly spent last weekend battling it out with suppliers after it was claimed to have demanded one-off cash payments from them.
