Target Canada Asks Suppliers For Cost Break To Share In Its Struggles
July 24, 2014 | 1 min to read
Target Canada is pushing its suppliers to give it a 2-per-cent cost break to help the U.S. discounter turn around its struggling Canadian operations and win an increasingly tough retail battle.
In a recent letter to its suppliers, obtained by The Globe and Mail, Target Corp. said it is setting up the Target Canada Business Development Fund (BDF) by collecting “an incremental 2 per cent accrual against receipts at cost” from its vendors, starting in March of 2015.
“The BDF will provide incremental funding for the key corporate initiatives, including investment in technology and supply chain, necessary to enhance the effectiveness of our business partnership and expedite our sales growth with you,” said the letter from John Butcher, new senior vice-president of merchandising at Target Canada.
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