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U.K. Supermarket Chain Morrisons to Fast-track Payments to Small Vendors Due to Coronavirus

Morrisons is to accelerate funds to its smallest suppliers to help them with money circulate during the coronavirus pandemic.

U.K. Supermarket Chain Morrisons to Fast-track Payments to Small Vendors Due to Coronavirus

From next week, vendors who provide less than £1m ($1.2 Million) of goods a year to the supermarket will receive funds within 48 hours rather than the standard two-week window, benefiting about 3,000 small companies – over half of whom are farmers.

The supermarket, which will post annual results next week, stated it would be functioning the new system until the end of May when it will be evaluated. The chain has reclassified 1,000 suppliers to let them benefit from the policy change.

The environment secretary, George Eustice, said: “These steps will help our farmers and food producers in their work of feeding the country”.

Distributors and retailers are struggling to meet the demand that is on a par with Easter or Christmas, events that usually take months of planning, and this is understood to have put pressure on some suppliers’ cash circulation.

Several small manufacturers may also have suffered a downturn in trade due to disruptions to exports or lower orders from hotels, restaurants and other hospitality establishments as people stay at home.

With stockpiling focused on store cupboard essentials, including toilet roll, cleaning products and tinned or packaged goods, some contemporary produce has not bought as well in shops.

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