Asda’s president Andy Bond has launched an amazing attack on suppliers, accusing them of breaking up any special relationship they may have had with the retailer and of failing to innovate.
In a thinly veiled reference to arch rival Tesco, he also accused them of failing to stand up to “bully-boy” tactics from other retailers.
Bond’s broadside came as he delivered a keynote speech at the annual IGD Convention, held this week in London.
Accusing the grocery sector of “bland, amorphous sameness” in terms of both products and stores, Bond went on to accuse suppliers of neglecting to repay Asda’s commitment to them.
“We have a history of working hard at supplier relationships because we always thought that if we were good to our suppliers, they’d be good to us - and if they were good to us, the customer would benefit. It’s quite logical but it doesn’t seem to be working lately. We’ve gone out of our way to be nice but we’re not getting much payback.
“It seems to me that suppliers simply don’t dare to establish points of difference between the supermarkets any more. What is the point of Asda being good to suppliers if we get nothing in return? What is the point of me putting myself out for them when they don’t put themselves out for me?”
Insisting that his words were not a threat “even if it sounds like one”, Bond issued a plea for suppliers to help the retailer “implement with flair”. He added: “Don’t be afraid to stand up to bully-boy tactics from other stores. Don’t be afraid to say different companies will have different terms, different relationships because no one business is the same as another.”
Bond’s comments come at a sensitive time for Asda in its dealings with suppliers. Own label ready meals supplier Ferndale Foods last month reported the retailer to the OFT, accusing it of breaking the supermarkets code of conduct by failing to give it enough notice of the termination of its contract, although the OFT later threw out the complaint.
Suppliers immediately hit back at Bond’s speech. “It’s a farce,” said one manufacturer, who rejected the idea that the supermarket chain had been treating its suppliers well. Another said: “Most suppliers would pitch all their good ideas to everybody but Asda. You would usually go to your best or most important customer first and leave the rest for the dregs.
“You can’t supply good ideas to everybody. Whoever you went to would want some exclusivity. So if Asda isn’t getting flair, I would look at why others are.”
However, the tone of Asda’s supplier conference in Leeds on Wednesday, the day after the IGD Convention, was less terse.
One supplier among the 400 company representatives addressed by Bond said it was a constructive meeting that focused on what Asda was doing to get the retailing basics right. “Bond said he was seeking to open up dialogue between suppliers. There was certainly no edge or feistiness to what he was saying. It was more about internal issues, such as queue length, availability and prices.”
>>p6 IGD Convention
The Grocer News Team
In a thinly veiled reference to arch rival Tesco, he also accused them of failing to stand up to “bully-boy” tactics from other retailers.
Bond’s broadside came as he delivered a keynote speech at the annual IGD Convention, held this week in London.
Accusing the grocery sector of “bland, amorphous sameness” in terms of both products and stores, Bond went on to accuse suppliers of neglecting to repay Asda’s commitment to them.
“We have a history of working hard at supplier relationships because we always thought that if we were good to our suppliers, they’d be good to us - and if they were good to us, the customer would benefit. It’s quite logical but it doesn’t seem to be working lately. We’ve gone out of our way to be nice but we’re not getting much payback.
“It seems to me that suppliers simply don’t dare to establish points of difference between the supermarkets any more. What is the point of Asda being good to suppliers if we get nothing in return? What is the point of me putting myself out for them when they don’t put themselves out for me?”
Insisting that his words were not a threat “even if it sounds like one”, Bond issued a plea for suppliers to help the retailer “implement with flair”. He added: “Don’t be afraid to stand up to bully-boy tactics from other stores. Don’t be afraid to say different companies will have different terms, different relationships because no one business is the same as another.”
Bond’s comments come at a sensitive time for Asda in its dealings with suppliers. Own label ready meals supplier Ferndale Foods last month reported the retailer to the OFT, accusing it of breaking the supermarkets code of conduct by failing to give it enough notice of the termination of its contract, although the OFT later threw out the complaint.
Suppliers immediately hit back at Bond’s speech. “It’s a farce,” said one manufacturer, who rejected the idea that the supermarket chain had been treating its suppliers well. Another said: “Most suppliers would pitch all their good ideas to everybody but Asda. You would usually go to your best or most important customer first and leave the rest for the dregs.
“You can’t supply good ideas to everybody. Whoever you went to would want some exclusivity. So if Asda isn’t getting flair, I would look at why others are.”
However, the tone of Asda’s supplier conference in Leeds on Wednesday, the day after the IGD Convention, was less terse.
One supplier among the 400 company representatives addressed by Bond said it was a constructive meeting that focused on what Asda was doing to get the retailing basics right. “Bond said he was seeking to open up dialogue between suppliers. There was certainly no edge or feistiness to what he was saying. It was more about internal issues, such as queue length, availability and prices.”
>>p6 IGD Convention
The Grocer News Team
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