Albertsons tells suppliers to eat the cost of tariffs: ‘We are not accepting cost increases’

• The Grocery series Albertson takes a difficult approach to definitionsIt tells its suppliers that it will not accept any price rise, according to a message from the company’s president in trade. “We do not accept cost increases,” the message states, before clarifying the process of multiple suppliers of suppliers.

One of the largest supermarket chains in America is to tell suppliers that they should eat high costs due to increased tariffs.

Albertsons, who owns 2,200 grocery stores across the United States, sent a letter to suppliers in late March, where he will deal with high prices.

With a few exceptions, We do not accept increased cost Because of the customs tariff, “reading the message (the focus in the original).

Suppliers It is not allowed to include costs related to tariffs in bills Without prior permission by Albertsons companies, “I mentioned, adding,” Any bills that include these fees without prior permission will be subject to the conflict and may delay the payment. “

The second largest grocery in America explained that this policy stems from its commitment to “maintaining the value proposals that our customers expect.”

Instead, suppliers who struck the tariffs to go to a multi -step operation “to ask for a cost change” for the goods they provide to Albertson, from giving a 90 -day prior notification. They will need to fill out cost change forms, and provide a “detailed explanation of the effect of customs tariffs” and the delivery of supportive documents, such as customs tariff notifications or fee receipts.

Once all documents are presented, the supplier will need to wait another 30 days for Albertson to review. Even so, the approval “is not guaranteed”, the message said.

Albertson did not respond to a request to comment on the message.

Missive highlights one of the numerous retailers used by retailers to circumvent the TROMP ONAFIN management tariff for many imported elements.

After President Donald Trump imposed a sudden tariff on China in late February, Wall Mart tried a similar tactic to pressure with his Chinese suppliers, and it was reported that they were asking them significant price cuts, in some cases of up to 10 %, according to Bloomberg. However, the price cuts were abnormal for some suppliers, whose margins could be less than 2 %, and Chinese officials soon fired their pressure campaign on Walmart.

At the same time, Amazon is also trying to re -negotiate some of its orders to maintain low prices, CNBC said. “ The sellers are likely to try to transfer higher costs to consumers, adding: “I understand the reason.”

Trump’s tariff distorted the markets and sent consumers ’morale down, as shoppers are widely expecting to rise in prices as a result of the highest taxes on foreign trade for nearly a century.

But Albertson’s response to the critics is also a sign that the chain is practicing its market strength like Cudget, forcing young suppliers to bend to his will.

Through the definitions, “The cost of many elements will increase, and the suppliers will penetrate the work if they cannot cover these increasing costs,” Matt Stoller, a ink control specialist and director of research on the American Economic Freedoms project, wrote on Thursday, describing the demand for Albertson “tampering.”

David Dain, Executive Editor of the Progressive Magazine American possibility, Those who discovered the speech for the first time, and raised the matter as a sign that the major companies can go through the prices freely while young competitors will suffer or even get out of work.

“The grocery suppliers who were exposed to their sources or manufacturing them abroad have incurred costs on their products, but Harbral, like this, has incurred that they will have to compensate for losses with other retailers,” Din wrote.

A similar dynamic occurred during the deficiency in the supply chain sparked by the Kofid’s pandemic, when the large grocery chains benefited from the disorder of the high prices and imposing more strict requirements on suppliers, according to the report of the Federal Trade Committee.

Albertsons has thousands of sites, most of them in the western United States, and they have trademarks including Vons, Safeway, ACME, Shaw’s and Randalls. It is only second to Kruger. The Slaslan tried to integrate in the year 2022, which was greater in the history of the industry, but the deal, which is valued at $ 24.6 billion, collapsed after multiple legal challenges.

This story was originally shown on Fortune.com

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2025-04-25 10:46:00