Tesco Puts on the Charm for U.S. Suppliers

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Tesco Puts on the Charm for U.S. Suppliers

LONDON -- Tesco is looking to stay on the good side of its U.S. suppliers when it enters the West Coast with its Fresh & Easy chain later this year, and launched a formal process for American suppliers to complain to bosses, ThisisMoney.co.uk reported.

Tesco met with suppliers to ensure a smooth opening of its U.S. chain in November, the report stated. The process is already in practice in the United Kingdom, but that the company wanted to "go a little bit further" in the U.S., a Tesco spokesman told the Web site.

The effort was to set aside concerns prompted by a Competition Commission investigation into the British grocery market and colluding, according to the report. Last month, the commission -- which is due to announce its findings in early October -- requested to view e-mails sent to United Kingdom suppliers by Asda and Tesco buyers. Both companies denied any wrongdoing, the report stated.

Tesco also told the U.S. suppliers it would win over communities by meeting local people and investing in projects, the Web site stated.
Meanwhile, the U.K.'s Office of Fair Trading found last week that the U.K.'s four main supermarket retailers -- Tesco, Asda, Sainsbury's and Morrisons -- colluded to raise milk prices in 2002 and 2003, the report stated.