- Grocery chain Albertson It follows a hard -line approach to definitionsIt tells its suppliers that it will not accept any price rise, according to a message from the company’s president in trade. “We do not accept cost increases,” the message states, before clarifying the process of multiple -part approval for suppliers who were struck by the fees.
One of the largest supermarket chains in America is to tell suppliers that they should eat high costs due to increased tariffs.
Albertsons, who owns 2,200 grocery stores across the United States, sent a letter to suppliers in late March, where he will deal with high prices.
(W) few exceptions, We do not accept increased cost Because of the customs tariff, “reading the message (the focus in the original).
Suppliers It is not allowed to include costs related to tariffs in bills Without prior permission by Albertsons companies, “I mentioned, adding,” Any bills that include these fees without prior permission will be subject to the conflict and may delay the payment. “
The second largest grocery in America explained that this policy stems from its commitment to “maintaining the value proposals that our customers expect.”
Instead, the suppliers who struck the customs tariff will have to pass a multi -step process to “request a cost change” for the goods they provide to Albertson, starting with giving prior notice for 90 days. They will need to fill out cost change forms, and provide a “detailed explanation of the effect of customs tariffs” and the delivery of supportive documents, such as customs tariff notifications or fee receipts.
Once all documents are presented, the supplier will need to wait another 30 days for Albertson to review. Even so, the approval “is not guaranteed”, the message said.
Albertson did not respond to a request to comment on the message.
Missive highlights one of the numerous retailers used by retailers to circumvent the TROMP ONAFIN management tariff for many imported elements.
After President Donald Trump imposed a sudden tariff on China in late February, Wal Mart I tried a similar pressure tactic with its Chinese suppliers, and according to what it was asked Discounts in the main pricesIn some cases up to 10 %, according to Bloomberg. However, the price cuts were not supported for some suppliers whose margins could be less than 2 %, and the Chinese officials soon fired themselves Click Click on Wall Mart.
During, Amazon She is also trying to re -negotiate some of its orders to keep the prices low, CNBC I mentioned. “ The sellers are likely to try to transfer higher costs to consumers, adding “I understand the reason.”
Trump’s tariff was identified on markets and sent the feelings of consumers as shoppers expect on a large scale High prices Because of the highest taxes on foreign trade for nearly a century.
But Albertson’s response to the critics is also a sign that the chain is practicing its market strength like Cudget, forcing young suppliers to bend to his will.
Through the definitions, “the cost of many elements will increase, and suppliers will run out of work if they are not able books Thursday, describing Albertson asking “in vain.”
David Den, the executive editor of the American Prospect magazine who discovered the message for the first time, as a sign that major companies can go through prices freely while young competitors or even get out of work.
“The suppliers of the grocery, whose sources have incurred or manufactured them abroad, clearly costs their products, but Harbral, like this, means that they will have to compensate for losses with other retailers,” Dayen. books.
A similar dynamic occurred during the deficiency of the supply chain after the Kofid’s pandem a report.
Albertsons has thousands of sites, most of them in the western United States, and they have trademarks including Vons, Safeway, ACME, Shaws and Randalls. It is only second to KrugerThe Slaslan tried to integrate in the year 2022, which was greater in the history of industry, but the deal of 24.6 billion dollars Collapse After multiple legal challenges.
This story was originally shown on Fortune.com
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