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Home » Technology » ‘HEMA is currently canceling all orders for suppliers’

‘HEMA is currently canceling all orders for suppliers’

January 13, 2021

HEMA writes this in a letter to the most important suppliers in Asia, which is owned by Faithful. It concerns a ‘unilateral adjustment’ of the agreements with the suppliers. According to the company, there is currently no space to store new goods.

“Stocks for December, usually our busiest month, are largely still there,” said a spokeswoman. “And having new stocks delivered that will never reach the customer is not good entrepreneurship.”

10 million loss weekly

According to the spokeswoman, HEMA is losing 10 million euros a week during the lockdown. Still, the decision would not have been taken out of financial need. According to commercial director Trevor Perren, who signed the letter, the capacity for processing invoices has decreased significantly because many people work from home.

At the start of the lockdown, the company tried to keep its stores open. Subsequently, the branches were classified as non-essential and had to close their doors.

The company will not collapse anytime soon, the spokeswoman said. “But we do think about the question: how?” In the letter, HEMA promises to improve online sales, among other things. That could be done better, the spokeswoman acknowledges, partly because the shipment via PostNL would leave something to be desired.

Snowball effect

According to retail expert Paul Moers, things are going badly at HEMA, even if the company does not show it. “If you report this to your suppliers, you will only cause unrest. In any case, these measures will have a snowball effect,” he says in Trouw. “Because the suppliers produce especially for Hema, so they cannot dispose of their wares elsewhere.”

Last month there was still good news for HEMA when the company was taken over by investment company Parcom and entrepreneur family Van Eerd, owner of supermarket chain Jumbo.


Source: RTL Nieuws by www.rtlnieuws.nl.

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