Home > Uncategorized > Tipping point for B&Q?

Tipping point for B&Q?

1348369_1310765_KingfisherLast week the Times conducted an investigation into B&Qs treatment of suppliers. It did not make for easy reading and the clear case of one supplier crashing into administration was highlighted. Whether in that case the blame was entirely B&Qs fault is a moot point but it was clearly a contributing factor.

Unfortunately due to paywalls I cannot link the article but this excellent piece in Retail Week covers the issue thoroughly

The key point of the article is that whilst these practices are not illegal, media pressure can be bought to bear successfully, thus.

Both Halfords and Premier Foods, exposed by Newsnight, were forced into the spotlight late last year for apparently squeezing suppliers.

Such schemes are far from unusual but once again they raise questions about unethical practices at big companies. Can retailers continue to pressure suppliers in light of such attention? After heavy criticism from the press, business groups and politicians, Premier Foods was forced to ditch its ‘pay to stay’ scheme, providing welcome relief to its many suppliers.

Good news. Personally I would like to see these issues highlighted more strongly in the mainstream media with the obvious hint at consumer pressure. However with Tescos, B&Q and Halfords all spending heavily on advertising, this is not something I expect to see in a hurry.

I am all for the free market and my reflex is against legislation but I do believe that the dreaded retrospective discount is something that could challenged perhaps. The difficulty is that the big chains will find a way of imposing the same charge but under a different guise

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