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Wesfarmers investigates how Target used suppliers to boost profit

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Wesfarmers is investigating deals done with 30 foreign suppliers to discount department store Target, which boosted profit by about 25 per cent in the first half with the express condition that the money flow back to the suppliers through higher prices before the end of the financial year.

The supplier rebate arrangements lifted Target's profit for the six months to December by between $US10 million and $US12 million ($13 million to $15 million).

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Tony Boyd is the former Chanticleer columnist. He has more than 35 years' experience as a finance journalist. Connect with Tony on Twitter. Email Tony at tony.boyd@afr.com

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    Original URL: https://www.afr.com/brand/chanticleer/wesfarmers-investiges-how-target-used-suppliers-to-boost-profit-20160330-gnuale