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| Laura Ashley boss dismisses accusations of bullying supplier | Laura Ashley boss dismisses accusations of bullying supplier |
| (6 months later) | |
| One of Laura Ashley's most senior executives has dismissed accusations of corporate bullying and defended the company's decision to demand a 10% discount from its suppliers – on the same day as it posted a 9% boost in profits. | One of Laura Ashley's most senior executives has dismissed accusations of corporate bullying and defended the company's decision to demand a 10% discount from its suppliers – on the same day as it posted a 9% boost in profits. |
| The interior-design and clothing retailer, renowned for its floral print dresses, has a steelier side, as was revealed this month by the leak of a letter to suppliers demanding an immediate 10% reduction in prices. Sean Anglim, Laura Ashley's chief operating officer, said he sent the letter because the retailer had to stay competitive with rivals. | The interior-design and clothing retailer, renowned for its floral print dresses, has a steelier side, as was revealed this month by the leak of a letter to suppliers demanding an immediate 10% reduction in prices. Sean Anglim, Laura Ashley's chief operating officer, said he sent the letter because the retailer had to stay competitive with rivals. |
| "I don't think it was wrong to ask for an immediate discount. We need to be competitive on price. Our margin rate has fallen recently and we've done a bit of selective repricing, so we are asking our suppliers to look at where they can create efficiencies in their supply chain." | "I don't think it was wrong to ask for an immediate discount. We need to be competitive on price. Our margin rate has fallen recently and we've done a bit of selective repricing, so we are asking our suppliers to look at where they can create efficiencies in their supply chain." |
| However, a spokesman for the Forum of Private Businesses – a lobby group that compiles a "hall of shame" naming large companies that squeeze their suppliers – said the retailer's latest figures revealed the business could give smaller firms some leeway. "We think this demonstrates how big businesses are happy to abuse suppliers regardless of their own financial position. A lot of people may have supposed Laura Ashley were in trouble, but their year-end figures suggest quite the opposite," said the spokesman. | However, a spokesman for the Forum of Private Businesses – a lobby group that compiles a "hall of shame" naming large companies that squeeze their suppliers – said the retailer's latest figures revealed the business could give smaller firms some leeway. "We think this demonstrates how big businesses are happy to abuse suppliers regardless of their own financial position. A lot of people may have supposed Laura Ashley were in trouble, but their year-end figures suggest quite the opposite," said the spokesman. |
| "It wouldn't have made it right had they been [in trouble], but to do so having recorded a 9% increase in profits smacks of unfairness. As this case shows, big businesses like this really need to adopt a more ethical approach and look at fairer ways of increasing profit margins without harming small firms who supply them." | "It wouldn't have made it right had they been [in trouble], but to do so having recorded a 9% increase in profits smacks of unfairness. As this case shows, big businesses like this really need to adopt a more ethical approach and look at fairer ways of increasing profit margins without harming small firms who supply them." |
| Laura Ashley is the latest high-street retailer to be squeezing suppliers after revelations that John Lewis, Debenhams and Monsoon had all demanded discounts. | Laura Ashley is the latest high-street retailer to be squeezing suppliers after revelations that John Lewis, Debenhams and Monsoon had all demanded discounts. |
| The controversial letter was sent to suppliers two weeks ago warning the "advent of online-only retailers and marketplaces" meant prices were being driven down. It said: "With this in mind, we are requesting an immediate cost price reduction of 10%. We feel this is both fair and equitable and will save us a process of reviewing our supplier database." | The controversial letter was sent to suppliers two weeks ago warning the "advent of online-only retailers and marketplaces" meant prices were being driven down. It said: "With this in mind, we are requesting an immediate cost price reduction of 10%. We feel this is both fair and equitable and will save us a process of reviewing our supplier database." |
| Laura Ashley reported a 9.2% jump in pre-tax profits from £18.4m to £20.1m for the year to 26 January, with sales up 4.5% to £298.8m. | Laura Ashley reported a 9.2% jump in pre-tax profits from £18.4m to £20.1m for the year to 26 January, with sales up 4.5% to £298.8m. |
| With 212 stores across the country, the business is now attempting to build a successful online presence. Internet sales were up 19.6%, with online business generating 16% of total UK sales, up from 13.8% last year. | With 212 stores across the country, the business is now attempting to build a successful online presence. Internet sales were up 19.6%, with online business generating 16% of total UK sales, up from 13.8% last year. |
| Launched in 1953 by husband and wife team Bernard and Laura Ashley in the market town of Machynlleth in Wales, the business started life by selling interior furnishings and women's fashion. Its eponymous founder died in 1985 and the business was listed in the same year. It is now controlled by a Malaysian investment company, which bought it from administrators in 1998. | Launched in 1953 by husband and wife team Bernard and Laura Ashley in the market town of Machynlleth in Wales, the business started life by selling interior furnishings and women's fashion. Its eponymous founder died in 1985 and the business was listed in the same year. It is now controlled by a Malaysian investment company, which bought it from administrators in 1998. |
| The business now operates in 28 countries around the world selling items ranging from rugs, blinds, paint and beds. | The business now operates in 28 countries around the world selling items ranging from rugs, blinds, paint and beds. |
| Squeezed suppliers have also suffered at the hands of John Lewis, Debenhams and Monsoon. | Squeezed suppliers have also suffered at the hands of John Lewis, Debenhams and Monsoon. |
| John Lewis sent a letter to its suppliers earlier this year demanding a discount of up to 5.25% if business had increased by 50% or more in the past year and Debenhams told its suppliers there was an "expectation" that they would get a cost reduction of at least 2% retrospectively applied to all ordered due for delivery from 4 March. | John Lewis sent a letter to its suppliers earlier this year demanding a discount of up to 5.25% if business had increased by 50% or more in the past year and Debenhams told its suppliers there was an "expectation" that they would get a cost reduction of at least 2% retrospectively applied to all ordered due for delivery from 4 March. |
| The letter said: "This is an increased focus within the business to optimise margins, given the strong trading performance in home and resulting increase in business for suppliers." | The letter said: "This is an increased focus within the business to optimise margins, given the strong trading performance in home and resulting increase in business for suppliers." |
| Monsoon Accessorize wrote to suppliers in February calling for a rebate of up to 4%. | Monsoon Accessorize wrote to suppliers in February calling for a rebate of up to 4%. |
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