skip to main content
Find Insight DIY on
* * *


Asda reduces payment days for smaller suppliers

Asda Store

Asda is planning to reduce payment terms to 14 days for over 1,000 of their smaller suppliers, with the objective of improving relationships with its supply base. Earlier this year, it was reported that suppliers would have to wait 90 rather than the 60 days for payments.

Following in the footsteps of their larger competitors, Asda is attempting to increase support for its supply base and establish an effective working relationship. This move will help 1,200 small suppliers 430 of which have moved to the new contract from 1st June.

It's also understood that the retailer has already implemented simplified terms and conditions for its supply chain, offering earlier payment finance options.

The UK's fourth largest supermarket suffered 11 consecutive quarters of sales decline for until the 12 week period to 21st May 2017, when sales increased by 0.9%. Asda hope that this change will help them boost their turnaround efforts.

An Asda spokeswoman said “Our relationship with our suppliers is vital to ensuring we can do the best job for our customers and we continue to focus on building strong partnerships with them, many of whom have been with us for decades. We’re always looking at ways we can work more effectively together and we believe it is the right thing to do to reduce our payment terms to fourteen days for our smaller suppliers.”

Source: Insight Team

Interested in following the performance of Asda? Sign up for our weekly Insight newsletter here.

01 June 2017

Related News

view more UK DIY News

Insight provides a host of information I need on many of our company’s largest customers. I use this information regularly with my team, both at a local level as well as with our other international operations. It’s extremely useful when sharing market intelligence information with our corporate office.

Paul Boyce - European CEO, QEP Ltd.

Don't miss out on all the latest, breaking news from the DIY industry