I went into a supermarket recently and helped myself to £50 worth of food. Rather than going to the tills to pay, I approached a security guard and told him I had no intention of paying and unless he allowed me to leave the store without paying, I would do my weekly grocery shop somewhere else. Oddly enough, he didn’t appreciate my position and I was forced to leave the store empty handed. And it is odd that he didn’t understand the point I was making because this same retailer does exactly the same thing with its suppliers. It has become common practice amongst some retailers to demand cash from suppliers or insist that outstanding debts are written off in return for a continued relationship. Only this week, the BBC reported that Premier Foods, one of the UKs biggest manufacturers, has been asking suppliers to pay to continue to do business with them. You can read the full story here
but it was the wording of a letter to suppliers that the BBC claim to be from Gavin Darby the CEO of Premier food that I found quite shocking: “We require you to make an investment payment to support our growth” he apparently wrote. It isn’t even subtle.