Figures published by the Groceries Code Adjudicator (GCA) has recorded that just over half of UK retailers and suppliers surveyed are aware of the GCA’s role, in response to its 2022 statutory review.
Established in 2013, the GCA’s aim is to monitor and enforce the Groceries Supply Code of Practice (the Code) that a selection of the UK’s large grocery retailers must comply with when dealing with their direct suppliers. The statutory review of the period 1st April 2019 to 31st March 2022 recorded views and evidence for the Minister for Enterprise and Markets to assess the performance of the GCA.
Regarding retailer and supplier awareness of the Code, GCA data recorded that 77% had a “good or fair” understanding of the Code in 2019, however this decreased to 74% in 2022. Awareness of the GCA was 84% in 2019 and 83% in 2022. It recorded that the number of those with a “good or fair “understanding of the GCA’s role was down 4% over the 3-year period.
Head of the GCA Mark White responded to the government consultation: “I have since recommenced visits to retailers by me and my team, including meeting a range of retailer employees to improve understanding of the Code, as well as to improve my and my team’s understanding of retailers’ businesses.”
Supplier confidence
GCA figures recorded that the number of suppliers who would not raise an issue with the body decreased by 4% in 2022 from 2019. Those who did not think the GCA could do anything about the issue rose by 5% over the same period.
It added that 53% of suppliers in 2019 were concerned about consequences if the retailer found out about an issue, which is now recorded to be at 42% this year. However, the number of suppliers who said they could address the issue themselves has decreased by 3% since 2019.
White said: “To provide total reassurance to suppliers concerned about retaliation, in February 2021 I launched a platform, ‘Tell the GCA’, that allows suppliers from anywhere in the world to report issues to me anonymously.”
Pressure of inflation
White concluded: “Responses to the GCA’s annual survey show the proportion of suppliers facing Code issues falling from 79% in 2014, shortly after the GCA’s establishment, to 29% in 2021.
“As inflation has created pressure in the grocery sector, this proportion rose to 35% in 2022, despite the work of the GCA. This third of suppliers, including many micro and small businesses (30% of direct supplier respondents), continue to face supply chain practices determined by the Competition Commission to potentially transfer excessive risks or unexpected costs from grocery retailers to suppliers.”
