BusinessCompany NewsMatalan asks suppliers to pay for its marketing

Matalan asks suppliers to pay for its marketing

Matalan squeezes supply chain to improve marketing for stores and brand

Retailer Matalan has informed its suppliers that it will be implementing a
2% reduction in all payments, in order to increase its marketing budget for the
company.

Matalan has sent a letter to all of its suppliers and the Forum of Private
Businesses informing them of the change in payments – which it hopes will raise
money for the company to pay for TV advertisements and store refurbishments,
Credit
Today
reported.

A spokeswoman for Matalan said in a statement: ‘This move sits alongside a
supplier-based consolidation programme, and will help fund our expansion plans,
the benefits of which we hope to share with our consolidated supplier base.’

The retailing giant posted a pre-tax profit of £53.2m in June this year,
almost double that for the same period last year.

FPB chief executive Phil Orford said: ‘The FPB took Matalan to task two years
ago for imposing a similar charge which, it insisted, was a ‘one-off. Clearly,
Matalan has an ongoing policy of blatant and sustained abuse, using its size and
power to make more money at the expense of its supplier base.

FPB are advising suppliers to make themselves aware of their rights under the
Late Payment Act.

Further reading:

Matalan
delivers crushing blow to suppliers

Government’s
wrong signal on late payments

Matalan
chief loses £800,000 CGT battle

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