Unsupported browser

For a better experience please update your browser to its latest version.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

ACE claims Tesco forcing suppliers to cut fees by 40 per cent

  • Comment

Tesco has come under fire from the construction industry business association ACE, which claims the supermarket giant is forcing its construction suppliers to cut fees by up to 40 per cent

The claim comes as the company announced yesterday (21 April) pre-tax profits of £3.13 billion – a hike of 10 per cent on the previous year.

ACE chief executive Nelson Ogunshakin said: ‘Whilst it is heartening to see Tesco doing very well even in the current global environment, we are hearing from our sources in the construction sector that Tesco may be boosting those record profits by arbitrarily seeking cuts in fees of up to 40 per cent from their construction suppliers.

‘If you are telling consultants at the front end of delivering key services to cut their fees by 40 per cent then that is not the action of an enlightened client. If you pay peanuts, you get monkeys,’ he said.

Ogunshakin added that such a policy would signify a backward step of cutting costs at the expense of quality.

Tesco was unavailable for comment at the time of going to press.


  • Comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions.

Links may be included in your comments but HTML is not permitted.

Related Jobs

AJ Jobs