INFLATION has weakened relationships between multiple grocery retailers and their suppliers, according to the Groceries Code Adjudicator.
The GCA’s 2022 sector survey revealed that 26% of suppliers said they had experienced a refusal by a retailer to consider a request for a cost price increase; or an “unreasonable delay” from the retailer in concluding the request.
After year-on-year improvements in retailer-supplier relationships were revealed in 2021, the survey now shows a fall in the number of suppliers not facing any Groceries Code-related issues, from 56% in 2021 to 47% in 2022.
The Groceries Code provides detail on how “designated retailers” should manage their relationship with suppliers. The code applies to 14 retailers who are ranked by their overall compliance.
In order of 2022 Code compliance rating, they are: Aldi, Tesco, M&S, B&M, Sainsbury’s, Co-op, Waitrose, Asda, Ocado, Home Bargains, Iceland, Morrisons, Lidl. Amazon, which was GCA designated on 1 March, after the survey had closed, was not included in the rankings.