Co-op Group will not take soft line with its suppliers

The Co-operative Group will take a no-nonsense line with suppliers, chief executive Peter Marks has pledged.

Speaking at trade show IFE last month, Marks said: "Are multiple [supermarket] buyers too tough? I'm as tough as anyone. If we're soft, we subsidise our competitors."

But in a sideswipe at other retailers, Marks said: "If we have a tough negotiation with a supplier and agree terms, we will stick to that. We won't renege on our agreements."

He said talks were ongoing between Co-op Group buyers and Somerfield suppliers after the society completed its acquisition of Somerfield earlier this year.

The Co-op Group has not disguised the fact that it aims to secure better deals with suppliers to both retail groups in the wake of combining its buying power with Somerfield. "The deal gives us stronger purchasing power and we'll be looking to use that to drive down prices," said Marks.

However, he pledged to support dairy farmers supplying the business with milk. "If milk prices go down in April, dairy farmers will be leaving the industry at the rate of four or five a day. We're doing deals with all milk producers, talking to them about what we can offer. We will have to reflect what we're paying the producer with prices in stores."

The society aimed to increase its fair trade product lines, with Marks claiming: "Despite the economic downturn, people are not losing values."

He also said the Co-op Group was looking into selling more ethnic food. "I don't think we're doing enough to target the ethnicities of the communities we're trading in."