tutor2u | Coronavirus: Morrisons to pay small suppliers immediately

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Coronavirus: Morrisons to pay small suppliers immediately

Graham Watson

15th March 2020

Great story this - and good for Morrison's image too.

In the past, many supermarkets have been accused of exploiting their monopsony power to delay payments to small suppliers, sometimes for as long as 90 days or more. In distributional terms, this means that they accrue interest on the money in their accounts and the small suppliers lose out.

However, Morrisons have gone public, in the knowledge that the coronavirus outbreak is going to affect small firms first. And thus, they are seeking to protect their small suppliers. Will other supermarkets follow suit?

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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