John Lewis defends supplier rebate demand

John Lewis John Lewis last week said it made record profits last year and announced a £210m bonus pool for staff

Related Stories

John Lewis has defended its plan to ask for a rebate from suppliers who see an increase in sales through its stores.

Some business and retail organisations had accused the company of being "greedy" over its demands.

However, John Lewis managing director Andy Street told the BBC that the scheme was "absolutely fair" and was common practice in the industry.

"What we're actually doing is sharing the success of the business," he told BBC Radio 4's Today programme.

"It's what retailers have done all the time. What we're saying to suppliers who we've worked with for many, many years is that we will share the success together. We will grow the business. If we don't grow the business together, there's absolutely no change in terms," he added.

Mr Street said the scheme would begin in a year's time. Suppliers would be asked for a 0.75% rebate if their sales grew by 10%.

Several reports earlier in the week said the rebate would rise to 5.25% if sales grew by more than 50%.

Following the reports, the Forum of Private Business called the scheme "outrageous" and accused John Lewis of being "greedy".

Last week, the John Lewis partnership, which includes Waitrose supermarkets, reported a 16% rise in full-year profits to £409m.

The group also announced a 17% bonus for staff, up from 14% the year before, with this year's bonus pool worth £210m.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • Witley Court in Worcestershire Abandoned mansions

    What happened to England's lost stately homes?


  • Tray of beer being carried10 Things

    Beer is less likely to slosh than coffee, and other nuggets


  • Spoon and buckwheatSoul food

    The grain that tells you a lot about Russia's state of mind


  • Woman readingWeekendish

    The best reads you need to catch up on


  • Salim Rashid SuriThe Singing Sailor

    The young Omani who became a pre-war fusion music hit


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.