Aldi and Sainsbury's tops Grocery Code survey for fourth year running

For the fourth year running, Aldi topped the overall table
For the fourth year running, Aldi topped the overall table

Aldi topped the table in which suppliers rank their perception of retailers’ compliance with the Grocery Code, which encourages fair trading practices with suppliers.

The 2017 survey saw a large increase in the number of suppliers participating (1220), up 320% from the first poll in 2014.

For the fourth year running, Aldi topped the overall table, with Sainsbury’s as the highest placed of the big four (also for the fourth year in a row).

Asda and Iceland have ranked poorly in the league table, both coming bottom.

Christine Tacon, the current Groceries Code Adjudicator said: “I am also pleased to report that suppliers are recognising that Tesco is continuing to improve; as is Morrisons, following a step change in its engagement with suppliers.”

Delay in payments

Miss Tacon told Tesco last year to introduce significant changes to practices and systems after finding Britain’s largest supermarket seriously breached a legally-binding Groceries Supply Code of Practice to protect groceries suppliers.

Delay in payments continues to be the issue of highest concern to suppliers and remains in the current category in the Adjudicator’s Top 5 along with forecasting and linked to this the issue of promotions.

The Adjudicator added: “My survey is showing that the clarity I provided on delay in payments in the report of the investigation into Tesco and through working collaboratively with retailers has been valuable to suppliers and retailers alike.

“Practices are improving and suppliers are getting a better understanding of how I interpret the Code in this area and what they can challenge.

“One of the key areas where delay in payments manifests itself is in incorrect deductions from invoices with or without notice, with 32% of suppliers reporting this as an issue in this year’s survey. While this is down from 46% in 2014, this shows me that there is still work to be done in this area and I am right to maintain this as one of my Top 5 issues.”