MELBOURNE: Ragtrader has republished a letter sent to major suppliers of Target Australia, advising that all orders received up to December 23 will be subjected to a five per cent discount.MELBOURNE: Ragtrader has obtained the letter sent to major suppliers of Target Australia, advising that all orders received up to December 23 will incur a five per cent discount.
As reported on www.ragtrader.com.au, the discount department store issued the letter on September 22. The communication came just a week after the 2011 Target Supplier Awards, where major brand partners were recognised for their services.
Target Australia advised orders received from September 26 to December 23 would be subjected to the five per cent rebate. Several disgruntled suppliers forwarded the letter to Ragtrader.
“This is over and above the current trading terms,” one wrote. “We believe this is unfair as all aspects of this business are facing dire financial stress at the moment. This will potentially cause local suppliers to close their doors.”
22 September 2011
Dear Valued Partner,
As one of our top suppliers, our partnership has been formed over years, with an investment of mutual benefit to both of our organisations. Our sales trends strongly suggest that the trading period to Christmas and into the New Year is going to be particularly challenging. As you will have seen in the media, this is also reflected in general market trends. We need to take action now to ensure that Target and its suppliers can maintain customers’ trust in the value we offer them as a preferred family shopping destination during this period of austerity.
Since our orders were placed, circumstances have changed, including the Australian dollar and improved commodity prices. Rather than renegotiate every cost price, we intend to take an additional five per cent rebate on all orders received from 26 September - 23 December, 2011. We have not taken this decision lightly. For all orders from January onwards our negotatiations will take into account these challenging conditions.
As a business, Target continues to invest in the brand for long-term sustainable growth and is continually looking at new and innovative ways to generate ongoing sales for shared benefits for you as our valued supply partner.
We appreciate your understanding and co-operation with this decision. Please contact the Relevant Business Manager, or alternatively Peter Venter, Neil Kerry or Denis Leahy directly.
We look forward to working through this current challenging period with you and into future trading opportunities.
Yours Sincerely,
Launa Inman
Managing Director