Telling the truth about SME life today

Woolies: a ?wolf in sheep’s clothing?

Share on facebook
Share on twitter
Share on linkedin
Share on email

“Small companies should be on their guard,” says Fred Edwards, the founder of Henley-on-Thames-based interim FD service MyFD. “Although it’s sad that a great trading name like Woolies is bowing out, there’s a stark warning here that trading with high profile, established businesses isn’t necessarily going to secure your own commercial success."

While Woolies might have had a reputation among the general public as the “kind old granny” of the high street, Edwards says the retailer was like a wolf in sheep’s clothing, “ruthless in its dealings with suppliers who, it now appears, were subsidising a flawed business model.”

"Businesses seeking successful trading relationships with giants need to take a reality check: is this contract really so worth having that you can justify the margins you’re being asked to accept?” he says. “If not, take a deep breath and take your business elsewhere. Or you, too, could be a victim, not only of the credit crunch, but of companies that are far less secure than they look.

"With 30,000 employees in danger of losing their jobs and no chance of a government bail-out (unlike the banks), the only chink of light might come from the prospect of Woolies’ administrators being able to trade through the high-volume Christmas period.

“Let’s hope that there not hundreds of small suppliers who will also pay the ultimate price."

Related articles:"You’ll never see Pipers Crisps in Tesco"Woolworths and MFI call in the administrators

Picture source

Trending

Topic

Share on facebook
Share on twitter
Share on linkedin
Share on email

Related Stories

Trending

If you enjoyed this article,
why not join our newsletter?

We promise only quality content, tailored to suit what our readers like to see!