Supermarket bosses have signed a new commitment promising suppliers will not risk being delisted if they raise alleged breaches of GSCOP directly with retailers.
All 14 retailers covered by the Code today signed the agreement, with Groceries Code Adjudicator Mark White saying he was determined to protect suppliers from “negative consequences” if they come forward with issues.
The Adjudicator’s move comes amid a wave of cost price increase (CPI) requests from suppliers which has led to a raft of arbitrations between the Adjudicator and retailers, although so far White has not launched any formal investigations.
He has expressed fears supermarkets may have been using the cost of living crisis and their desire to keep prices down as an excuse for delisting.
Wright has met with all of the designated retailers’ code compliance officers (CCOs) in a bid to ease relations with suppliers.
The new commitment signs the supermarkets up to “ensuring suppliers do not face negative consequences as a result of raising issues with the business directly or with the CCO”.
It adds: “Each of the CCOs has confirmed they will treat any discussion held with a supplier in the strictest of confidence and that it will be for the supplier, and the supplier alone, to determine whether the CCO may disclose any details about the subject matter of their Code-related discussion within their designated retailer.
“Each of the CCOs has also confirmed their retailers want to hear from suppliers and that they want to work collaboratively with suppliers to resolve issues and to strengthen relationships. “
White’s latest YouGov survey of suppliers closes on 26 February. Last year’s report showed deteriorating relations between supermarkets and suppliers after many years of progress.
“As well as telling me through my survey, it’s also important suppliers can speak honestly and frankly to the retailers when issues arise, so problems can be resolved as quickly as possible,” said White. “Suppliers must be confident they can do this without negative consequences for their business.
“I take this issue very seriously. Each of the retailers has confirmed to me that they want to hear from suppliers and work collaboratively to resolve issues.”
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