Laura Ashley accused of squeezing suppliers

Fashion and homewares retailer Laura Ashley has been accused of squeezing its suppliers by support group the Forum of Private Business, after the retailer sent a letter out to its suppliers demanding a cost price reduction.

According to reports by the BBC, the retailer sent its suppliers a letter earlier this month asking for an "immediate cost price reduction of 10 percent" including on orders already placed.

Laura Ashley calls for cost price reduction

Laura Ashley, which has 200 stores across the UK, said in the letter that prices were “continually being driven down with increased promotional activity and the advent of online-only retailers.”

Adding that it felt the cost price reduction was “both fair and equitable” and would save them the process of reviewing its supplier database.

The FPB has deemed this a “lazy and destructive” way of conducting business, and has stated that the requested cost reduction is "a huge amount".

A spokesman for the FPB added: “In fact [the reduction] probably means in many cases the supplier is making no profit or even operating at a loss.”

Laura Ashley is the latest retailer to be criticised by the FPB, department stores Debenhams and John Lewis were both accused of “bullying” suppliers earlier this month after they both demanded new terms from suppliers.

Image: Laura Ashley