Tesco Slaps Suppliers with New ‘Fulfilment Fee’ or Face Penalties!
Suppliers Shocked by Tesco’s New Charges
Tesco has warned its suppliers: agree to a new “fulfilment fee” or face penalties. The fee could hit branded goods by as much as 12p per item and 5p for own-label products, no matter the price. Retail experts are fuming, calling Tesco’s move “outrageous” and unheard of among other supermarkets.
Tesco Says Fee Needed for Online Growth
In an email to suppliers, Tesco defended the charges as necessary to cover soaring costs of serving a booming online customer base. The retail giant boasts it’s now the UK’s largest online grocery service, handling over one million weekly orders and supplying thousands of independent retailers and catering customers.
Small Businesses Get a Break, But Wholesale Hit Hard
- Businesses under £250,000 revenue are exempt.
- But online sales through Tesco’s wholesale arm, Booker, will still get hit.
Tesco warned suppliers rejecting the fee risk range reviews and altered pricing plans.
Suppliers Furious as Tesco Refuses Price Hikes
Industry insiders have slammed Tesco’s timing. Retail consultant Ged Futter said: “Tesco has chosen the wrong time to do this.” He warned that Tesco’s refusal to hike supplier prices could soon lead to empty supermarket shelves. Last Thursday afternoon, Futter was flooded with supplier calls—15 of them, all vowing to reject the fee.
