According to the seventh GCA annual groceries
sector survey, the 13 UK supermarkets regulated by the Groceries
Code Adjudicator have demonstrated a very high level of
Code-compliant behaviour in their relationships with their
groceries suppliers.
From the very first survey in 2014, suppliers have scored their
perceptions of retailers’ compliance with the Code for the
retailers they supply. In 2020 almost 1,500 direct suppliers
responded to the survey and the results are extremely tight at
the top.
Only three retailers were rated below 90% for complying
consistently well or mostly with the Code - which was the best
score in 2014; nine are between 92% and 94%; the highest is 96%
and the lowest is 81%. In 2014 the percentage reported as
complying with the Code consistently well and mostly ranged from
58% to 90%.
In common with every annual survey carried out by YouGov on
behalf of the GCA, Aldi is the highest
performer - rated with 96% compliance - but the major riser in
2020 is Co-operative Group Limited (Co-op), which is ranked joint
second on 94%. This is a massive improvement from its tenth place
in 2019 when the GCA found it had
breached the Code on two counts. Co-op also takes top place on
the “most improved” table.
Bottom-placed retailer on overall compliance was Iceland on 81%
followed by B&M on 86% and Marks & Spencer on 89%. TJ
Morris – trading as Home Bargains – achieved a 92% rating in its
first year as a regulated retailer
Christine Tacon said:
This squeezing of performance into significantly higher levels
of compliance is testament to the effectiveness and impact
of my collaborative approach.
Aldi should be particularly congratulated for having held the
top spot every year for seven consecutive years, but the survey
shows the considerable efforts to improve made by all
retailers, which are clearly represented in this striking
graphic.
Supplier assessment of retailer overall compliance with the Code.
These record compliance ratings are in line with the other
headline results of the survey. Early analysis recently reported
showed the lowest-ever number of direct suppliers – 36% - had
experienced a Code-related issue at any point in the past 12
months, compared to 79% in 2014, and that suppliers had
recognised improvements across every issue covered by the Code.
Ms Tacon added:
I am delighted to see how much progress Co-op has made. Last
year I spent eight months working with the retailer as it
implemented the recommendations made as a result of my
investigation.
It has demonstrated a huge amount of progress in embedding the
Code and I have enjoyed working with the Co-op team to ensure
that they understood the issues and implemented actions that
would prevent the same or similar problems recurring in future.
Each retailer will now receive company-specific analysis of the
survey broken down by sector and Code issue to help them identify
and understand areas for further improvement.
Ms Tacon said:
This is my final survey as GCA as I will be
stepping down later in 2020 after seven years in office. I was
encouraged to conduct the survey by the retailers even though I
was not going to be in office to prioritise or make progress on
areas of concern.
The retailers have recognised the survey’s immense value: they
want to know that suppliers are experiencing progress on areas
where they have focused and to identify areas where they may
need to do more.
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