Friday, December 2, 2016

Metro cuts suppliers’ pay

Metro Inc. will cut one per cent from payments to its suppliers, effective Monday.

It’s the third of Canada’s biggest supermarket chains to simply announce that it won’t pay suppliers their full invoiced prices.

Loblaws and Sobeys cut their payments by 1.45 per cent in September.

Metro says it needs to cut costs to remain competitive.

It also says suppliers are getting better terms, such as electronic payments.

Loblaws’ profits increased by more than 25 per cent in its most recent quarter and Metro’s by 10 per cent, but Sobeys lost money because of the deal it made to buy the Safeway chain in Western Canada.