Monday, October 27, 2008

Tesco tells the government to ...

Complete the sentence any way you please.

A week or so ago, the UK government asked the major retail chains to speed up payments to small suppliers, as noted in this post.

In response, Tesco has notified their suppliers that they will be slowing down payments.
The grocer wrote to its suppliers saying it had changed payment terms from 30 to 60 days, effective from December 1, according to a letter seen by the Financial Times.
To be fair, the government request specified food suppliers and Tesco's message apparently went out only to non-food suppliers, but I think the odds are against Tesco lengthening terms in one category and voluntarily shortening terms in another. But maybe I'm wrong.

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