Matalan criticised for supplier deduction

• By Purcon
• Tuesday, August 26, 2008
• Email
• Print
• RSS

Matalan has been identified by the Forum of Private Business (FPB) as attempting to cut its costs by reducing payments to its supply chain.

The retailer is imposing a two per cent deduction on all its payments to suppliers from September 1st, as the group seeks to expand in a difficult economic climate.

At the expense of supply chain job providers, Matalan plans to use the money gained to pay for marketing, develop international franchises, refurbish stores and extend retail parks.

Phil Orford, FPB chief executive, questioned why the company couldn't fund its investment with the substantial profits it has recently announced.

He said: "This is not the first time that Matalan has passed on costs to its suppliers and it represents a payment problem that is endemic across a number of industry sectors."

In June, Matalan posted a pre-tax profit of £53.2 million, almost double the figure for 2007.

This story has been brought to you by Purcon, the Supply Chain recruitment specialists.

See our latest supply chain jobs.