The Competition and Markets Authority (CMA) has announced that industry rules setting out how retailers should treat their suppliers will now apply to TJ Morris, the owner of discount chain Home Bargains.
With the company’s annual groceries turnover now exceeding £1bn, the CMA stated that Home Bargains’ dealings with suppliers must now follow the Groceries Supply Code of Practice (GSCOP), which aims to make sure that retailers do not abuse their commercial power.
The move comes after the CMA announced last November that the GSCOP, compliance of which is managed by the Groceries Code Adjudicator (GCA), would also apply to Ocado and B&M having previously only covered the 10 largest supermarket chains. This was because the two group’s annual groceries turnover also exceeded the £1bn threshold.
NAM Implications:
- One of the ‘disadvantages of growing the business…
- Seriously, Home Bargains will gain from GSCOP in terms of improved supplier relations, with the right partners.
- Meanwhile, the CMA could speed up the process of building the retail pool by lowering the turnover entry barrier…
- We know it works, so why not apply GSCOP more liberally?
