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GCA achieves 'significant' progress for suppliers

The Groceries Code Adjudicator has said the UK’s top ten supermarkets have all acted on issues raised by the organisation and suppliers are seeing the benefit.

GENERAL MERCHANDISE

GCA achieves 'significant' progress for suppliers

Adjudicator Christine Tacon said she was achieving significant progress as a sector-wide survey showed a further fall in the number of suppliers experiencing Groceries Code-related issues.

According to the YouGov survey carried out on behalf of the GCA 62% of direct suppliers said they had experienced an issue in the past year compared to 70% in 2015 and 79% in 2014.

Suppliers rated Aldi, Sainsbury’s and Lidl as the top three supermarkets in terms of complying ‘consistently well’ and ‘mostly’ with the Code during the previous 12 months.

Direct suppliers also told YouGov that most retailers have improved their behaviour in the past year with the highest performer identified as Tesco - 65% of those supplying the retailer saying its practices had improved and only 5% reporting they had worsened.

“All the regulated retailers have acted on the issues I have raised over the past year and there have been some excellent examples of changes in retailer practice,” said Tacon.

“I am delighted that direct suppliers are seeing the impact of real change for their businesses. For the second year running the number of suppliers reporting Code-related issues has fallen.”

The YouGov survey identified the top issues experienced by suppliers. Icorrect deductions from invoices with or without notice topped the list on 30% followed by excessive retailer charges for artwork/design and no compensation/incurring penalty charges for inaccurate forecasting.

Tacon said she has used the survey findings and other information received as well as her learnings from the Tesco investigation to develop a new list of top five issues that will be the focus of her work in the coming year.

The consultation is open for 12 weeks until 19 September.

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