CIPSA Managing Director quoted in BRW over Target's 'brand bullying'

CIPS Australasia Managing Director Jonathan Dutton FCIPS has labelled retailer Target’s recent move to slash payment to its suppliers by five per cent as “brand bullying”.

Target announced it will cut five per cent from the prices it pays all suppliers for the next three months as it struggles with retail conditions.

As quoted in the 13 October issue of BRW magazine, Dutton said, “That kind of practice devalues and commoditisers suppliers, which is never a good idea and particularly not in a country like Australia.”

“Our small market, with its diminishing manufacturing base, geographical isolation and far-flung population, poses a big enough risk to supply chains as it is,” he said.

Ingrid Just, spokeswoman for consumer advocacy group Choice, added any savings Target was able to negotiate with suppliers should result in lower prices for consumers.

"We would hope they would pass the savings on, especially as they have acknowledged the economic environment is so tough," she said.