Palmer & Harvey has angered independent retailers by doubling its minimum order requirements.
The UK’s biggest wholesaler is understood to have increased the minimum order from 25 to 50 outers. Indies failing to meet the new minimum order will face a delivery charge.
One retailer who contacted The Grocer and has been a P&H customer for 35 years said the hike would “put independent businesses at risk”.
“I have been told by a P&H rep that small independents who have been purchasing from them will now have to increase their minimum outer rate for an order to be delivered. How will small independents manage this?” Another source claimed the increase was “across the board” and would come into effect this month.
A P&H spokeswoman said: “All commercial terms remain of a confidential nature between Palmer & Harvey and its customers. We have always had a minimum quantity order in place and this is subject to frequent review to ensure we continue to provide the best overall deal for our customers. We believe our minimum order quantity to be significantly lower than our main competitors’.”
The move comes just months after P&H joined forces with Costcutter in a deal that saw Costcutter take control of P&H’s symbol stores Mace, Your Store and Supershop. In turn, P&H secured an eight-year distribution deal for all Costcutter stores, due to come into effect this summer. At the time, P&H said the deal would allow it to focus on wholesale distribution.
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