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
Gillfor partners with IKO in exclusive distribution deal
Tue, December 05th, 2023
Mastermind Toys finds a buyer
Tue, December 05th, 2023
Learn how to drive appliance & kitchen sales in latest issue of Dealer News
Tue, December 05th, 2023
RONA shares strategy, new look for its dealers, at Montreal buying show
Mon, December 04th, 2023
Gawtrey announces retirement from Home Hardware
Mon, December 04th, 2023
Vista Railing expands sales team in Ontario and U.S.
Mon, December 04th, 2023
French home improvement supplier Alpagroup sets up in North America
Fri, December 01st, 2023
LBMAO’s AGM and gala brings Ontario industry members together
Fri, December 01st, 2023
Canadian shoppers to spend 15 percent more this holiday season: Retail Council of Canada
Fri, December 01st, 2023
Rainbow Bridge car explosion was a lumber dealer, not a terrorist
Thu, November 30th, 2023