The following article, which was taken from TW-Network December 2006 issue, revealed the fatal consequences misusing ones powerful position in retail can have for the consumer. It is unfortunate, that business ethics as practiced by C&A stay hidden from the consumer.

C&A Demands Discount and Rebate

The clothing chain C&A informed its suppliers through a letter from the European headquarters in Brussels, that for all orders beginning March 1st, 2007, they will deduct and withhold 12% of the payments of the invoice. Already about 5 years ago, the clothing chain had caused a stir with suppliers. Back then, they had announced that the cash discount for 10-day-payments was going to be raised to 8%.

Suppliers questioned by ‘Textilwirtschaft’ said: “We have to live with such demands nowadays.” It is certain that such a distinct increase in rebates cannot be achieved without lowering quality. In the end, C&A is going to get less product for less money.

None of the suppliers questioned wanted to refuse the new conditions. If you do not want to loose C&A as a customer, you really do not have another choice but to comply. Corporate spokesman Rolfes confirmed that who does not accept the new conditions is not going to receive any orders after March 1st, 2007.