BHETA INTERVENES AS BIG RETAILERS THREATEN SUPPLIERS WITH EXTENDED TRADING TERMS
BHETA has stepped in to defend DIY, housewares and garden suppliers from the actions of multiple retailers seeking to impose extended trading terms in these exceedingly challenging times. This follows the actions of at least seven significant retail names in the home enhancement sector notifying suppliers of their intention to implement revised payment terms, adding a further 90 days to the current agreements in place.
In strongly worded letters to Trading Directors and Chief Buying Officers, BHETA’s Chief Operating Officer, Will Jones has requested urgent telephone appointments to discuss the likely consequences for suppliers; and to point out that it should surely be the collective responsibility of both retailers and suppliers to face the challenges of Covid-19 jointly, to secure the future security of the sector.
Commenting on BHETA’s intervention, Will Jones said, “While we are all trading in extremely challenging and unprecedented times, retailers seeking to extend payment terms, which in many cases are already lengthy, only adds to the difficulties being faced at the moment. To be blunt, huge retailers with considerably more resources than most of their suppliers are potentially going to cause the demise of many home improvement, housewares and garden companies.
“Put simply, by taking actions like these, certain retailers are posing a threat not only to their own supplier base but to the whole industry. It is nothing short of commercial bullying – and at the very worst of times for us all. I cannot imagine that consumers would be too impressed to hear that some of their favourite brands were trying to exploit this terrible situation in this manner.
“BHETA has received numbers of complaints from its supplier members about threats from large retailers over the last couple of weeks. It’s ironic that this should happen just when the European DIY Retailers Association (EDRA)/ the Global Home Improvement Network (GHIN) and the Home Improvement Manufacturers Association (HIMA) – the leading associations representing the global home improvement sector – have issued reminders to all industry stakeholders that fair and constructive business partnerships are a necessity in these turbulent times. I look forward to a swift and positive response from the UK retail players who appear to be out of step.”
For more information about BHETA’s lobbying service, contact BHETA’s member services manager, Nicola Adams on firstname.lastname@example.org.
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