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You can find the current article at its original source at http://www.theguardian.com/business/2013/dec/17/debenhams-demands-supplier-discount-christmas
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| Version 1 | Version 2 |
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| Debenhams demands supplier discount eight days before Christmas | Debenhams demands supplier discount eight days before Christmas |
| (1 day later) | |
| Debenhams has demanded that its suppliers pay a 2.5% a discount on goods just eight days before Christmas. | Debenhams has demanded that its suppliers pay a 2.5% a discount on goods just eight days before Christmas. |
| The high street retailer told suppliers last night that it will take the money from their accounts on Tuesday. Suppliers had not been consulted about the discount demand in advance. | The high street retailer told suppliers last night that it will take the money from their accounts on Tuesday. Suppliers had not been consulted about the discount demand in advance. |
| Simon Herrick, Debenhams' finance director, told suppliers: "As we will mutually benefit from the growth of Debenhams we are now seeking a contribution from our suppliers to support our commitment to on-going investment." | Simon Herrick, Debenhams' finance director, told suppliers: "As we will mutually benefit from the growth of Debenhams we are now seeking a contribution from our suppliers to support our commitment to on-going investment." |
| Herrick did not explain why suppliers must pay the money just before Christmas – a notoriously tricky time of the year for both retailers and suppliers. A spokeswoman for Debenhams said the timing of the demand "lands when it lands", and said it was "not to do with Christmas necessarily". | Herrick did not explain why suppliers must pay the money just before Christmas – a notoriously tricky time of the year for both retailers and suppliers. A spokeswoman for Debenhams said the timing of the demand "lands when it lands", and said it was "not to do with Christmas necessarily". |
| The spokesman declined to comment on whether Debenhams was suffering from cash-flow difficulties. | The spokesman declined to comment on whether Debenhams was suffering from cash-flow difficulties. |
| In the letter emailed to own-brand suppliers on Monday night, Herrick said they had to help contribute to Debenhams' expansion and refurbishment plans. | In the letter emailed to own-brand suppliers on Monday night, Herrick said they had to help contribute to Debenhams' expansion and refurbishment plans. |
| The modernisation programme, which includes a £25bn facelift for the Oxford Street branch, has yet to improve the chain's financial performance. The company reported a 2.7% fall in pre-tax profits to £154m in the year to the end of August. | The modernisation programme, which includes a £25bn facelift for the Oxford Street branch, has yet to improve the chain's financial performance. The company reported a 2.7% fall in pre-tax profits to £154m in the year to the end of August. |
| Debenhams, which is also planning to open 14 new stores over the next four years, said the discount demand was not unusual in the retail industry and pointed out that both John Lewis and Laura Ashley have asked for supplier discounts. However these discounts were demanded in March not the week before Christmas. | Debenhams, which is also planning to open 14 new stores over the next four years, said the discount demand was not unusual in the retail industry and pointed out that both John Lewis and Laura Ashley have asked for supplier discounts. However these discounts were demanded in March not the week before Christmas. |
| Retail analyst Richard Hyman, a consultant at Verdict Research, said: "Screwing your suppliers is something that is easy to do but the implications of that are something quite far reaching. | Retail analyst Richard Hyman, a consultant at Verdict Research, said: "Screwing your suppliers is something that is easy to do but the implications of that are something quite far reaching. |
| "It is very important for retailers to look after their partners as well as their customers. The pain and the benefit have to be shared out with a reasonable degree of democracy." Debenhams shares were down 3% in afternoon trading. | "It is very important for retailers to look after their partners as well as their customers. The pain and the benefit have to be shared out with a reasonable degree of democracy." Debenhams shares were down 3% in afternoon trading. |
| • This article was amended on 18 December 2013 because Debenhams spent £25m on a facelift for its Oxford Street branch, not £25bn as the original said. | |
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