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Memo To: - Store Manager From: -Kathleen Norton, CEO, Evergreen Natural Market Date: -September 19, 2017 Subject: -Concern regarding slotting-fee agreement with suppliers There was some concerns regarding the slotting fee agreement with the suppliers, which were raised in the last year’s quarterly retreat. We need to work out our strategy to implement the slotting fee in our company and the newly acquired Arugula, because of the following reasons. Firstly,Shelf space is hard to come by in retail stores. In order to add new brands others must be deleted all together or the size of their display changed. This costs the retailer time and money to make the shelf space available and the displays for each product and to accommodate leading brands and make available new products we need to charge certain amount from our suppliers. Also, there is a huge risk in placing new products on shelves and to make sure that we as a retailer don’tsuffer any losses, we need to have some security money as slotting allowance. This in turn