A leading consumer goods maker has hit out at Tesco after the retailer was reported to have asked non-food suppliers to wait 60 days for payment.
Bart Becht, chief executive at Reckitt Benckiser, told the Financial Times the tougher payment terms could eventually be very damaging for smaller firms.
He said: “The question is [if] in the long term they drive the smaller suppliers out of business. That is the key question and it might happen.”
Tesco might ask Reckitt, one of its suppliers, and others for extended payment terms in a bid to “squeeze more” out of them, Becht added.
And the supermarket chain claimed that only a small number of suppliers will be affected by the move.
It said the decision was part of its global review into supplier terms.
Tesco also denied claims this week that it expects weaker than normal sales growth this year.
