UK: Monsoon faces criticism over supplier terms
Monsoon has increased payment times from 60 to 90 days
UK retailer Monsoon Accessorize has come under fire from the Forum for Private Business over changes to its payment terms.
According to the small business lobby group, the retailer has increased payment times from 60 to 90 days, with new suppliers subject to a mandatory 4% supplier invoice discount.
It added that Monsoon is offering suppliers a chance to be paid more quickly, but with heavier discounting involved. For payment within 7 to 10 days of goods received, the retailer is seeking a 10% discount, or for payment within 30 days, 5%.
"Monsoon is hitting new suppliers with a double whammy here," said the Forum for Private Business spokesman Robert Downes. "First they increase payment times to 90 days from an already pedestrian 60. Then they slap on an outrageous 4% supplier invoice discount charge. Just exactly what planet are they on in the current economic climate?
"At the end of the day, if supply chain prices are forced up as a result, it's the consumer - Monsoon customers - who end up paying for their greed."
Responding to the claims, a Monsoon Acessorize spokesperson said: "Monsoon Accessorize values all its supplier relationships and aims to build them over the long term and to the benefit of all parties.
"Monsoon Accessorize has agreed discounts with its trading partners over the years which vary from time to time and help drive growth and sustainability for the business and its suppliers."
The spokesperson emphasised that the retailer would not comment on individual cases due to confidentiality agreements.
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