MISSISSAUGA, Ont. — Target Canada is leaning on suppliers to absorb some of its financial stress by adding a 2% price discount. In a letter obtained by Report on Business, Target announced to vendors the creation of the Target Canada Business Development Fund (BDF) to collect “an incremental 2% accrual against receipts at cost” beginning next March. The move follows a similar decision by Sobeys, which pressed suppliers for a 1% cut after closing its acquisition of Safeway last year. That request generated ill will among suppliers, which analysts predict will be repeated for Target. Martin Gooch, CEO of Value Chain Management, called the BDF a “double-barrel hit and a double-barrel shotgun,” noting that Target “isn’t giving [vendors] the volume” they need to raise the 2% difference.
Target seeks relief from suppliers
Most Recent
Most Read
GMS acquires Florida distributor
Fri, August 30th, 2024
Loblaw pilots sitting cashiers
Fri, August 30th, 2024
Don’t miss the incredible speakers at the Hardlines Conference!
Fri, August 30th, 2024
Home Hardware dealer garners NHPA's Young Retailer Award
Thu, August 29th, 2024
GMS posts Q1 results
Thu, August 29th, 2024
NHPA conference presents strategies for weathering bad times
Thu, August 29th, 2024
More Canadians say they’re bagging their own groceries
Thu, August 29th, 2024
RONA Foundation launches campaign
Thu, August 29th, 2024
Throwback Thursday: 10 years ago, Orgill show in Chicago reflected hardlines "turbulence" in Canada
Thu, August 29th, 2024
Tando Composites names Reese Wholesale as flagship dealer
Wed, August 28th, 2024