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
Consumer boycott of Loblaw Companies begins
Fri, May 03rd, 2024
Pont-Masson ad evokes a classic movie
Fri, May 03rd, 2024
Featured Classified: Taiga
Fri, May 03rd, 2024
Canfor announces earnings, acquisition
Thu, May 02nd, 2024
Two more retailers to showcase Quebec-made products
Thu, May 02nd, 2024
Throwback Thursday: “Canadians are ready to start spending again,” we reported ten years ago
Thu, May 02nd, 2024
RONA stores raise money in May to support communities
Thu, May 02nd, 2024
AD Canada garners recognition as great place to work
Thu, May 02nd, 2024
AQMAT unveils its “Family Portrait” of the industry in Quebec
Wed, May 01st, 2024
Is the honeymoon ending for self-checkout?
Wed, May 01st, 2024