Aldi cuts time it takes to pay its small suppliers to 14 days

German retailer says terms will apply to about 100 suppliers from September 11th

German retailer Aldi is reducing the time it takes to pay its small suppliers to 14 days. The new terms, effective as of September 11th, will apply to 100 or so suppliers that transact up to €300,000 worth of business annually with Aldi.

The terms are very competitive with industry norms. Figures from the Small Firms Association for example, indicate that on average it takes 62 days for a small firm to get paid, even though the majority of contracts offer credit terms of just 30 days.

Finbar McCarthy, group buying director at Aldi, said: “We recognise that cost pressures across the supply chain are increasing and placing a strain on smaller businesses in particular. Reducing payment terms to our smaller suppliers should help ease some of this pressure.”

Aldi says that the initiative is just one of many it has put in place to support its supply base. These include ensuring suppliers do not make any financial commitments without prior assurances on cost and volumes, keeping buying patterns stable throughout the year, and not running “buy one get one free” or multi-buy promotions.


Latest figures from Kantar Worldpanel show that Aldi is tied with Tesco as being Ireland's fastest-growing supermarket, and it now has a 11.4 per cent market share. Aldi now partners with more than 175 Irish producers and opened its 129th store earlier this year in Ennistymon, Co Clare.

Fiona Reddan

Fiona Reddan

Fiona Reddan is a writer specialising in personal finance and is the Home & Design Editor of The Irish Times