On Monday, Walmart Canada started charging suppliers extra fees, which some say could be the breaking point between food producers and supermarkets.
A big trade organization representing manufacturers said negotiations are still in process as suppliers push back since Walmart announced the new fees earlier this summer.
Walmart will be charging a fee of 1.25 per cent on the cost of all goods sold to Walmart plus an extra 5 per cent for goods sold through e-commerce.
The fees will help pay for Walmart’s $3.5 billion plan to remodel its Canadian operations.
Walmart explained the remodel would lead to sales growth for suppliers, making the fees reasonable.
On Monday, Walmart Canada spokesperson Adam Grachnik said: “We launched the initiative because the Canadian retail industry is evolving and the way we work with suppliers needs to change, too.”
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