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.