Albertsons supply suppliers are eating the price of tariffs, ‘We do not accept the cost growth’

• Grocery chain Albertsons takes a tough approach to tariffsTo tell the suppliers, the company will not accept any price increase in the company’s trading. “We do not accept the price increase,” letters, recipients say before checking the multiple approval process for suppliers, before checking the payments.

One of America’s largest supermarket networks should eat due to growing tariffs for suppliers.

Albertsons, which have 2,200 grocery stores in the United States, sent a letter to suppliers by writing how price growth will act.

“Except for a few, We do not accept the price increase “The letter read (emphasis on the original) due to tariffs.

“Suppliers Tariff-related costs are not allowed to include in the invoices Without permission in advance by Albertsons, “later reported,” any invoice that covers such charges without previous permits can be disputed and will result in payment delays. “

The second largest grocery of America explained that this policy is due to the obligation to “protect our customers ‘expectations’. “

Instead, the suppliers who were shot by tariffs, 90 days warning to Albertsons will be forced to go through the “requiring cost change” for the goods issued to Albertsons. They must fill out the cost-change forms, offer a “detailed explanation of the tariff effect” and deliver supporting documents such as tariff notifications or import fee revenues.

Once all the documents are submitted, you have to wait 30 days for supplier Albertons. And then, the approval said “not guaranteed.”

Albertsons did not respond to a request for comment on the letter.

MisDive, one of many tactical vendors, again used in many imported items, be used to start again, restart, to restart.

President Donald Trump, after applying surprise tariffs in China in late February Diamatic He said he tried similar pressure tactics with Chinese suppliers Basic Price CuttingUp to 10% in some cases according to Bloomberg. However, prices are cut off for some suppliers, margins can be lower than 2%, and Chinese officials have started soon Pressure Campaign at Walmart.

Meanwhile Amazon Trying to keep some orders down to low prices, CNBC declare. CEO Andy Jassy told his speech The sellers on the platform will probably try to pass higher expenses to consumers, “I understand.”

Trump tariffs sent a consumer sense to consumers because buyers expected a wide range Price rides As a result of the highest taxes about foreign trade in about a century.

However, Albertsons protect market power as a cudgel to bend the answer, and small suppliers of damage, chains, small suppliers.

Tariffs, “Many items are going to a leap and if suppliers are not able to cover the growing costs,” Research director in the American Economic Freedom Project, write Thursday calls for Albertsons ‘absurd’ request.

David Dayen, Executive Editor of the Progressive Magazine American perspective, The first opening of the letter is a sign that large companies suffer from smaller competitors or derives or even descend.

“I will have a clear cost of food suppliers abroad or abroad, but they will have to pay a loss with such hardball, other retailers,” stop write.

Similar dynamic, large groceries chains, increasing grocery chains, increased by the growing commission, when the suppliers apply harder requirements and suppliers, similar dynamics occurred report.

Albertsons, mainly in the United States have thousands of places in the United States and have brands, including vons, safe, Acme, Shaw and Randalls. Only the second in size Kroger. The two chains tried to unite in 2022, it would be the largest in the industry, but the $ 24.6 billion contract break up after a large number of legal problems.

This story was first displayed Fortune.com

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