Coronavirus: Sainsbury’s ends immediate payment terms for small suppliers

The supermarket brought in the immediate payment terms in March to support its small suppliers during the coronavirus pandemic. 

Sainsbury’s brought in the terms as the larger supermarkets moved to support their suppliers during the pandemic.

In March, Morrisons moved to support its suppliers​​ with immediate payments. 

The big-four retailer revealed it was to extend the immediate payment scheme​​for smaller suppliers for a further three months to help combat continued difficulties stemming from the coronavirus pandemic.

Payments​

In April, Danone speeded ​up payments​​ to its suppliers via a new platform supplied by C2FO.

A Sainsbury’s spokesperson said: “We temporarily introduced immediate payment terms to nearly 1,500 of our small suppliers in March to support them as they adapted their businesses in response to the coronavirus pandemic. We also pledged support to all our suppliers and committed to working collaboratively with them to support them with vital cash flow where needed​ 

“We are in the process of talking to our smaller suppliers about permanently shortening payment terms from what they were before the crisis to a faster payment of 14 days from the invoice date.​

Efforts​

“We recognise the extraordinary efforts of our suppliers during this unprecedented period, as we all work together to serve customers with food and other essential items, and are committed to continuing to support them where we can.”​

It was revealed that food sales at retailers Sainsbury’s and Marks & Spencer had kept the businesses afloat​​ during the coronavirus crisis.

In January, it was revealed that Sainsbury’s boss Mike Coupe was to retire, to be succeeded by retail and operations director Simon Roberts, who will take over from 1 June this year.

Sainsbury’s proposed a merger with supermarket chain Asda​​ in 2019.