The recent merger between the two giant hypermarket chains Big C and Carrefour is taking a toll on suppliers, who say they are facing tougher and possibly unreasonable trade conditions.
The mightier Big C is said to be flexing its muscles, demanding that its suppliers pay higher rates.
Photo Source: Bangkok Post |
The mightier Big C is said to be flexing its muscles, demanding that its suppliers pay higher rates.
Representatives of Big C have told suppliers unofficially that if the fees they were paying to Carrefour and Big C were different, the higher rates would now apply.
Suppliers interviewed by the Bangkok Post said this practice was unfair because the character and positioning of Big C and Carrefour were different. They said Big C had also started to call for unreasonable demands and charges from suppliers.
The Big C chain, now with 113 branches, is now comparing Carrefour's contracts with suppliers with its own contracts. On an itemised basis, it is possible that the higher fee will be chosen.
For example, the fee charged for displaying products at the front of a shelf row is higher at Carrefour, so this rate could be applied to all suppliers at both chains.
But Carrefour charges lower fees for inclusion in the promotional brochures it mails out, so suppliers may end up paying the higher rate charged by Big C.