Morrisons looks to suppliers for help in competitive market

SUPERMARKET group Morrisons is seeking better terms from some suppliers as it jostles for position in the grocery sector.

According to reports the Bradford-based group is preparing to begin talks in the next few weeks and is keen to reach agreements by early 2010.

Morrisons, the UK’s fourth biggest supermarket chain, wants to strike competitive deals with suppliers that will allow it to offer customers more special offers.

Promotions are considered to be a key part of the group’s armoury in its ongoing battles against its main rivals, Tesco, Asda and J Sainsbury.

But one the supplier told the Financial Times it would only agree to support promotions if there were benefits to its own business.

“We are not in the business of supporting retailers by saying we will give back some margins to help fund promotions,” it said.