Albertsons tells suppliers to eat the cost of rates: “We do not accept costs increases”

• Grocery chain Albertsons is adopting a hard approach to the ratestelling his suppliers that he will not accept any prices rise, according to a letter from the company’s merchandising chief. “We do not accept increased cost increases,” says the letter, before exposing a multi -party approval process for Levies -affected providers.

One of the largest supermarket chains in America is to say suppliers who have to eat cost excursions due to an increase in rates.

Albertsons, who owned 2,200 grocery stores throughout the United States, sent a letter to suppliers in late March, explaining how he would deal with the price hikes.

“With few exceptions, We do not accept cost increases Due to the rates, “he read the letter (emphasis on the original).

“Suppliers are It is not allowed to include the costs related to the rates on the invoices Without the prior authorization of Albertsons’ companies, “he said, adding,” any invoice that includes these charges without prior authorization will be subject to dispute and may cause payment delays. “

The second largest food in America explained that this policy is derived from its commitment “to maintain the value proposals that our customers expect”.

Instead, suppliers affected by the rates will be forced to go through a multistep process to “request a change of cost” for the goods they supply to Albertsons, from the advanced 90 -day notification to the company. They will need to fill out the cost change forms, offer a “detailed explanation of the fare impact” and submit support documents, such as tariff notices or import receipts.

Once all the documents have been sent, the supplier will have to wait 30 more days for Albertsons to review. And even then, the approval is “not guaranteed,” the letter said.

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

The letter emphasizes that one of the many tactics retailers use to move again to the rates again and again in many imported items.

After President Donald Trump imposed surprise rates on China at the end of February, Walmart tried a similar pressure tactic with his Chinese suppliers, as asked to ask them Main price cutsIn some cases, up to 10%, according to Bloomberg. However, the price cuts were a non -state for some suppliers, whose margins could be below 2%, reported output and Chinese officials soon launched their own Walmart pressure campaign.

In the meantime, Amazon It also tries to renegotiate some of your orders to keep the prices low, CNBC informed. CEO Andy Jassy said on the way out That the platform vendors tried to overcome the highest costs for consumers, adding: “I understand why.”

Trump’s rates have ruined the markets and sent the feeling of consumers down, as buyers are waiting widely Price excursions As a result of the highest taxes on foreign trade in almost a century.

But Albertsons’ response to detractors is also a sign that the chain is using its market power as a Cudgel, forcing younger suppliers to double their will.

With the rates, “the cost of many articles will be ready and suppliers will go out of business if they cannot cover these costs increased,” Matt Stoller, specialist in anti-monopoly and director of research on the American Economic Liberties project, write On Thursday, call Albertsons demand “absurd”.

David Dayen, the executive publisher of Progressive Magazine The north -American perspective, Whoever discovered the letter for the first time, considered it a sign that large companies could transmit their price hikes freely, while smaller competitors would suffer or even leave the business.

“The grocery suppliers that the supply or manufacture are abroad have clearly supposed costs in their products, but the ball lasts like this would mean that they should compensate for losses with other retailers,” Dayen write.

A similar dynamic occurred during the scarcity of the supply chain caused by the Covid pandemic, when large groceries took advantage of the interruption to increase prices and impose stricter requirements on suppliers, according to a Federal Trade Commission. report.

Albertsons has thousands of locations, mainly in the western United States, and has brands such as Vons, Safeway, Acme, Shaw’s and Randalls. It only has the second size Kroger. The two chains attempted a merger in 2022 that would have been the largest in the history of industry, but the agreement of $ 24.6 billion He separated After several legal challenges.

This story originally presented to Fortune.com

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