Tesco spent the weekend battling it out with suppliers after it was accused by them of demanding one-off cash payments.
According to these suppliers, new terms have been outlined by Tesco so that it can try to maintain its profit margins as it faces increased competition from discounters Aldi and Lidl, reports the Times.
Following a warning from the environment secretary Hilary Benn last week that retailers should pay suppliers faster during the credit crunch, one unnamed individual told the paper that a document from the supermarket laid out “aggressive” conditions and these had to be agreed by 2 November.
Tesco refused to make any comment on these specific allegations but did state that it is looking to get the best deals for consumers and is therefore talking to suppliers.
“Our customers are facing tough times as a result of the current economic slowdown and they are looking to Tesco to help,” a spokesman said.
He added that consumers want the firm to “negotiate” the best deals on its behalf.
In what could be a further blow for Tesco, Aldi has said that efforts by Sir Terry Leahy’s organisation to move into the discount arena have not cut into its market share.
