Loblaw increases fees for suppliers, adding to tensions in food industry
Source The global and mail
Loblaw Companies Ltd. is raising fees it charges to suppliers, a move that manufacturers have been fearing since competitor Walmart Canada signalled a fee hike in the summer. It is standard for retailers to charge fees to vendors for things such as in-store promotions or shelf placement by deducting a percentage of what they pay for each order. On Thursday, Loblaw advised many suppliers that a new 1.2-per-cent charge will be added to those fees. Existing charges for deliveries will also go up, from 0.85 per cent to 0.97 per cent for deliveries to Loblaw's distribution centres; and from 0.26 per cent to 0.3 per cent for deliveries to stores. The new fees take effect on Jan. 3.