The Groceries Code Adjudicator (GCA) has launched its annual groceries sector survey, which asks suppliers to disclose how they are being treated by the 14 retailers covered by GSCOP.
The survey, run by the independent polling company YouGov, is regarded as one of the most important ways for suppliers to confidentially tell the GCA about their experiences working with the UK’s leading grocery retailers. The questions cover individual retailer behaviour and issues affecting the industry. The responses will help the GCA understand which retailers are perceived as the most and least Code-compliant and how cost price negotiations and other issues are impacting suppliers.
GCA Mark White commented: “My last two surveys showed how inflation and cost price increase negotiations have strained relationships between retailers and suppliers. However, I know that suppliers have faced a wide range of other issues over the last twelve months, including de-lists and inaccurate forecasting.
“I want to hear from as many suppliers as possible about your perceptions of retailer behaviour and the key issues affecting the sector. Your input will help me to focus my engagement with the retailers to ensure they are treating all suppliers fairly and lawfully.”
The 2023 survey was the third survey in a row with more than 2,000 responses. These responses highlighted several supplier concerns, including the continued impact of inflation. 28% of respondents reported a refusal to consider a CPI or an unreasonable delay in reaching a decision on a CPI request, which was the most reported issue over the past six years.
Furthermore, delays and errors in implementing price rises likely exacerbated other issues faced by suppliers. 25% of suppliers said last year that they had experienced inadequate processes and procedures in place to enable invoice discrepancies to be resolved quickly; up from 18% in 2022. Meanwhile, 16% of suppliers said they had experienced data input errors (e.g. pricing) that had not been resolved promptly (within seven days); up from 10% in 2022.
Despite this, perceived Code compliance improved compared to 2022. The average compliance score across the 14 retailers was 92%, while 8 of the 13 retailers included in the 2022 survey improved their overall compliance score by 3% or more. M&S took the top spot in 2023 with a record-high score of 99%, followed by Waitrose, B&M, and Sainsbury’s, all on 97%. Amazon came bottom with a score of 59%.
The 2024 survey is open for six weeks, closing on 25 February, with the results published later this year. The GCA will commission YouGov to conduct anonymous follow-up interviews with a select group of respondents to explore supplier concerns in more detail. Suppliers will be able to indicate their willingness to participate in these interviews at the end of the survey.
The GCA survey is available here
NAM Implications:
- A no-brainer opportunity for suppliers to help correct grievances.
- Without risk.
- Over to you…
