FOR IMMEDIATE RELEASE
The Forum of Private Business, arguably one of Tesco's toughest critics, today welcomed the news that the supermarket has returned to profit, taking at face value their explanation that improved profitability is based on robust leadership and good business practices.
The Forum will be writing to the Chief Executive of Tesco, Dave Lewis, to see if they can discuss supplier terms and potentially remove them from the Forum's Hall of Shame (https://www.fpb.org/your-voice/hall-of-shame)
Ian Cass, CEO of the Forum responded, "It’s good to see Tesco’s turning round the poor results of last year, they seem to have done this through vigorous cost cutting, getting rid of less profitable stores, some aggressive marketing and cost cutting.
"As a big player their health is good news for many of the small suppliers who provide them with products and services, as long as they treat these small suppliers as a partner, then the Forum welcomes this news. "
"My only concern would be if Tesco’s return to profitability is achieved at the expense of many of these small suppliers, through less ethical and unscrupulous behaviour, using their powerful position to their own commercial advantage, something we have had to highlight in our “Hall of shame” in the past."
Notes to Editors
Forum's Hall of Shame can be found at
https://www.fpb.org/your-voice/hall-of-shame under other businesses.
Tesco was initially put in for demands of refunds for loss of profit and loss of sales at full retail value.
The Forum has also criticised them for excessive demands in terms of packaging in the last few years.
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