Tesco Slaps Suppliers with New “Fulfilment Fee” – Sparks Outrage
Tesco has hit suppliers with a cheeky new “fulfilment fee,” warning that refusal to pay will bring penalties. An insider leak reveals the charge could be as high as 12p per branded item and 5p on own-label goods – no matter the price. Retail experts have slammed the move as “outrageous,” pointing out no other supermarket uses this type of model.
Why the New Fee? Tesco Says It’s About Online Growth
Tesco insists the fee is vital to cover the costs of serving a booming online shopping crowd. An email from the retail giant told suppliers it’s the UK’s largest online grocery home shopping service, processing over one million online orders weekly. Tesco also highlighted its role in supplying thousands of independent retailers and caterers.
Small Firms Exempt, But Wholesale Suppliers Face The Heat
- Small businesses under £250,000 revenue are spared the fee.
- But online sales via Tesco’s wholesale arm, Booker, will still be charged.
- Suppliers refusing the fee risk tougher pricing plans or range reviews.
Supplier Backlash: “Wrong Time for Tesco to Do This”
Many suppliers, including those servicing Tesco’s wholesale business, are fuming. Retail consultant Ged Futter warned Tesco is “choosing the wrong time” to push this through. With Tesco rejecting supplier price hikes, Futter predicts more empty shelves soon.
“I got 15 calls from suppliers this afternoon—all refusing to pay the new fee,” said Futter.
