CVS Corp. and BJ’s Wholesale Club Inc. were notified that the Securities and Exchange
Commission is looking into the way they handle rebates from
suppliers, Dow Jones Newswires said.
CVS, the No. 2. U.S. drugstore chain, and BJ’s, the third-
biggest U.S. warehouse-club operator, are being asked by the SEC
about vendor allowances, money received from suppliers in exchange
for reaching sales targets or performing marketing efforts, Dow
said.
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The companies are part of a new investigation into the way
retailers in New England states account for rebates and incentives
from suppliers, Dow said. Staples Inc. and Tweeter Home
Entertainment Group Inc. have received similar letters from the
SEC, Dow said.
CVS spokesman Todd Andrews told Dow that the company has
responded to the SEC’s letter in detail. Cathy Maloney, a BJ’s
spokeswoman, said the retailer also has responded, according to
Dow.
Bloomberg News
