Retailers and supplier rebates: Buying up the shelves

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UK Only Article: 
standard article

Issue: 

My big fat Greek divorce

Fly Title: 

Retailers and supplier rebates

Rubric: 

Supplier rebates are at the heart of some supermarket chains’ woes

Main image: 

Every little rebate helps

Every little rebate helps

MEETING angry shareholders is an experience few company bosses savour. Yet on June 26th Dave Lewis, the new chief executive of Tesco, Britain’s largest supermarket chain, will have to do exactly that. The firm will hold its first annual meeting since revealing that it had inflated its profits by £263m (1m) through wrongly booking rebates from suppliers—prompting his predecessor’s departure. Since then little has gone right for Tesco: sales have continued to slide, and the falling value of its property has forced it to declare a pre-tax loss of £6.4 billion for the year to February. Worse still, a Serious Fraud Office inquiry has been opened into the accounting scandal, which could cost the firm more than the error itself.
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Source: Retailing
Retailers and supplier rebates: Buying up the shelves