Healthcare chain Holland & Barrett has told suppliers that it will be pushing through cost reductions of at least 5%, three months after first writing to suppliers demanding price cuts.
An initial letter from CEO Peter Aldis to suppliers in January suggested the price cuts would enable suppliers to “contribute proportionally to the growth of the business”. This was backed up by a further communication last week to supplier who had not responded, stating that a lack of communication would be taken as acceptance of the terms which will come into force on June 1st.
Emma Cockerill, head of sales and procurement said that the chain was “delighted” by the response of a large number of its suppliers that had been “very proactive in developing plans that drive their businesses in conjunction with our expansion, both in the UK and overseas.
"However, despite the request in January to contact us, there is a small group of supplier who have decided not to respond.
“Given that we have had hundreds of negotiations with our suppliers to reach mutually satisfactory conclusions, we are unable to allow this small group to purely ignore the letter. We therefore have to conclude that a non-response means acceptance of the changes we are proposing.”
