Evil, evil, evil
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/3543706/Revealed-the-inside-story-of-Tescos-Discounter-House.html
Of course, they've been putting people out of business this way for years. BOGOF? The suppliers are told they have to take the brunt of it. Decide a wholesale price with Tesco at the beginning of the growing season, when they've already squeezed you so you are barely making a profit? You can bet your bottom dollar you'll be facing a price reduction later down the line and paying for it.
There are farmers/growers/producers round here who have had to dump entire crops because after Tesco have reneged on agreed prices, have gone back and said that the producer has to cover the cost of a BOGOF, or a price reduction - when they've already had to pay for the packaging, the labelling, the transportation, the shelf placement (sometimes having consignments rejected, sometimes seemingly on a whim), because they just can't afford the expense of physically meeting Tesco's demands. Sometimes they are lucky. They can find a local restaurant or shop who will take stuff - one rang around and managed to get a whole season's worth of aubergines to an airline caterers. But what they do is still criminal.
I hate, hate, hate Tesco.
Of course, they've been putting people out of business this way for years. BOGOF? The suppliers are told they have to take the brunt of it. Decide a wholesale price with Tesco at the beginning of the growing season, when they've already squeezed you so you are barely making a profit? You can bet your bottom dollar you'll be facing a price reduction later down the line and paying for it.
There are farmers/growers/producers round here who have had to dump entire crops because after Tesco have reneged on agreed prices, have gone back and said that the producer has to cover the cost of a BOGOF, or a price reduction - when they've already had to pay for the packaging, the labelling, the transportation, the shelf placement (sometimes having consignments rejected, sometimes seemingly on a whim), because they just can't afford the expense of physically meeting Tesco's demands. Sometimes they are lucky. They can find a local restaurant or shop who will take stuff - one rang around and managed to get a whole season's worth of aubergines to an airline caterers. But what they do is still criminal.
I hate, hate, hate Tesco.