Arcadia has now decided that it will take in deliveries from suppliers that were on their way to the retailer’s distribution centres on 17th March, but only at a 30 per cent discount. Those that don’t accept this new edict will see the orders cancelled, delivery refused, and face the task of finding a cost-effective way to onward sell the goods.
In this further example of aggressive retailers attempting to shift losses which they would have incurred, Covid-19 shutdowns or not, onto the suppliers they have effectively screwed to the wall in respect of margins and extended payment terms, Arcadia is, say some, showing its true colours to the world. In fact, some say that Covid-19 is providing this business with the perfect cover for its treatment of suppliers, its heavily subsidised furloughing of staff, negated obligation to pay business rates and its stance with landlords.
From what we are hearing, few suppliers that survive this trading nightmare will ever consider supplying Arcadia again, which equates to game over should the business secure the third party funding it is chasing after. Many now await news of the mass permanent closure of stores which is seen as the next, and potentially only, logical conclusion for this fallen giant.
Share