Wu-Mart to stop charging suppliers for promotion staff
Beijing-based Wu-Mart has announced it will stop charging its suppliers fees on in-store promotional staff. According to local Chinese press reports, the retailer's director of public relations, Yu Fu said that it would take effect from 1 January 2009. The retailer expects this will help reduce prices and offer its customers more value products. In China, suppliers usually send their own promotional staff to hypermarkets and retailers charge listing fees for this. In the previous year, Wu-Mart received about CNY150 million (USD19.7 million) from this source. Some suppliers are pleased with the move and said that the fees can take up approximately 3% of their total sales.
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