HRG demands further rebate from suppliers
Home Retail Group's Argos and Homebase chains have written to suppliers telling them they will impose a further rebate on orders from 1 March.
The chains say they will add another 2% rebate to help fund its £100m a year improvement scheme, including installing click-and-collect points and replacing its catalogue with touchscreens.
The Daily Telegraph quotes David Robinson, Argos commercial director, as telling suppliers: 'As we travel along this journey, it is vital that both Argos and its suppliers play their part in supporting this transformation, and hence with effect from 1 March 2014, we will be amending our standard trading terms to include an additional 2% turnover rebate for orders placed on or after that date.'
HRG already takes 60 days to pay suppliers.
'Our suppliers are very important to us. Payment is made in accordance with pre-agreed terms and reflects the markets in which we and our suppliers operate. Details of these agreements are commercially sensitive and therefore will not be disclosed,' says an HRG spokesman.