Aldi promises prompter payment for small suppliers

Discount retailer Aldi says it will cut the time it takes to pay suppliers by more than half, to 14 days for transactions up to £250,000.

Image: Jaggery (CC BY-SA 2.0)
Image: Jaggery (CC BY-SA 2.0)

The changes will come into effect on 11 September as part of a wider range of initiatives to support its supplier base, Aldi UK & Ireland said.

Its managing director of buying Tony Baines said: "We recognise that cost pressures across the supply chain are increasing and placing a strain on smaller businesses in particular. Reducing payment terms to our smaller suppliers should help ease some of this pressure."

He added: "We have worked with many of our current suppliers since we entered the UK market more than a quarter of a century ago, and are always looking for ways in which we can work more effectively with them."

Earlier this year Aldi overtook the Co-op to become the UK's fifth biggest grocery retailer. It now has over 620 stores in the UK and Ireland and aims to have over 1,000 by 2022.

Two years ago it became the first retailer to sign up to the NFU's Fruit and Veg Pledge, covering its dealings with fresh produce suppliers.

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