15 December 2005
Sainsbury's has brought the procurement of its fastest growing clothing range back in-house and opened direct sourcing units in Poland and Hong Kong.
The supermarket chain confirmed it will not renew its contract with BMB Apparel, which currently sources the TU clothing range, when the agreement ends in June next year.
Sainsbury's opened new offices in Hong Kong and Poland in October following the decision to bring its buying and merchandising operation back in-house.
TU clothing is Sainsbury's fastest growing clothing brand in the UK. It was launched in September 2004.
A spokeswoman said: "Having greater control of our supply base will make us more flexible and more responsive to customer demands."
The cost savings will make Sainsbury's more competitive and will be passed on to customers, she added.