July 2023: Record of the Groceries Code Adjudicator (GCA) progress meetings with Code Compliance Officers (CCOs)
Published 31 July 2023
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1. Attendees
The GCA (Mark White) and members of his team met with the CCOs and other representatives from the designated retailers (Retailers) as follows:
1.1 Monday 10 July 2023
- J Sainsbury plc
- Lidl GB Ltd
1.2 Tuesday 11 July 2023
- B&M European Value Retail SA
1.3 Thursday 13 July 2023
- Marks and Spencer plc
1.4 Monday 17 July 2023
- Asda Stores Ltd
- Co-operative Group Ltd
1.5 Tuesday 18 July 2023
- TJ Morris Ltd (trading as Home Bargains)
- Wm Morrison Supermarkets Ltd
1.6 Wednesday 19 July 2023
- Amazon.com, Inc.
- Tesco plc
1.7 Thursday 20 July 2023
- Aldi Stores Ltd
1.8 Wednesday 26 July 2023
- Ocado Retail Ltd
1.9 Thursday 27 July 2023
- Iceland Foods Ltd
1.10 Friday 28 July 2023
- Waitrose Ltd
2. Key points
2.1 Retailer update
CCOs provided updates to the GCA about compliance activities including actions from the previous meetings held in March 2023, Code-related issues reported, topical issues and any upcoming initiatives likely to generate enquiries to the GCA.
2.2 2023 GCA survey results
The GCA and Retailers discussed the results of the 2023 annual survey, Retailer plans to address any areas of concern, and the provision to the GCA of suitable evidence that the Retailer is taking action in response to suppliers’ concerns.
2.3 Cost price negotiations
Retailers updated the GCA about their responses to cost price increase (CPI) requests from suppliers, the application of the 7 Golden Rules, the impact of CPIs on de-listing, and the prevalence of, and the Retailer’s approach to, cost price reduction negotiations. Where available and relevant these updates referred to the data that Retailers are using to monitor performance including the time taken to acknowledge, substantively respond to, and implement agreed CPI requests.
2.4 Payment practices
The GCA and Retailers discussed payment practices and performance, including as evidenced by the 2023 GCA survey, by statutory reporting and Retailers’ own analysis where relevant.
2.5 Audit claims
The GCA and Retailers discussed retrospective audit claim levels and Retailers’ progress towards best practice in handling claims (including supplier-initiated claims).
2.6 Requiring actions by suppliers
The GCA reminded Retailers about the restrictions in the Code on Requiring suppliers to take certain actions, including paying as a condition of being a supplier.
The GCA noted that when Retailers are making decisions and communicating with suppliers about those actions, Retailer processes, including training, briefing, and oversight of those communicating with suppliers, must be such that there is no Requirement and that Retailers can demonstrate that there was no Requirement.
The GCA explained that if he comes to believe that any Retailer may have Required an action that it should not have, he may ask the Retailer to provide evidence to show that it is more likely than not that it did not Require the action, and asked the Retailers to ensure that they would be able to provide that evidence if necessary.
2.7 Any other business
The GCA and Retailers discussed any other business specific to Retailers.