Monday, 25 January 2016

SFO Tesco investigation set to conclude this week

According to CityAM, quoting Cantor Fitzgerald’s Mike Dennis, the investigation could be wrapped up this week. Any fine/redress will obviously impact Tesco’s cash position in terms of repayment and re-financing bonds, adding to pressures on the company.

Longer term we believe that the government will legislate re the accounting for trade investment, and probably move to retro-payment based on auditable results. 

This means a move for suppliers to building in KPIs and compliance for every trade initiative, an inevitable and long overdue progression to fair-share dealing....

This development coupled with Tesco’s loss of market share, and unlikelihood of a return to old market dominance, means that suppliers are in a stronger position re negotiation of compliance.

A once-only opportunity for NAMs that are prepared to go all the way…

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