By cutting prices to win back shoppers from Aldi and Lidl, Tesco Plc is expected to report a profit margin of less than 2 percent this week. But the impact on hundreds of U.K. food suppliers has been far greater, with insolvencies more than tripling in five years. Despite regulators giving Tesco a public reprimand for delaying payments, these behaviors remain prevalent in the sector, according to Duncan Swift, head of food advisory at consultants Moore Stephens. “With no end to the price war in sight, food manufacturers are finding themselves less and less able to subsidize the aggressive buying tactics of big retailers,” he said.
Photographer: Angel Navarrete/Bloomberg
Forget Tesco, Suppliers Are the Real Victims in Price War: Chart
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