Tesco UK criticised for failing to protect suppliers

Outgoing Tesco CEO Dave Lewis will remain in the role until September

A new survey has named Tesco among the worst compliers of a code of conduct for treatment of suppliers by major retailers

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Tesco UK has come in for criticism today after a survey conducted by a grocery watchdog rated it the worst of the “big four” retailers for complying with an industry code of conduct applied to protect suppliers.

RTE.ie reports that in a survey of 1,145 suppliers, conducted by the Groceries Code Adjudicator, 4% of the retail giant’s suppliers felt that it never complied with the code – an improvement on its 6% rating one year ago – while 30% of respondents said the firm “rarely” complied with the code.

Previously, Morrison’s had been the worst performer in the survey, with an 8% non-compliance rate last year, which dropped to 2% in today’s survey, while Asda and Sainsbury’s both recorded a 1% rate. Outside the “big four”, Iceland was the worst overall performer, with a 5% non-compliance rate.

Reacting to the study, a spokesperson for Tesco said that the company had been working hard to improve its dealings with over 3,000 UK suppliers ever since last year’s £263m accounting scandal which related to supplier payments. She added that the survey is “just a snapshot.

“The survey does show that suppliers have seen higher levels of improvement in our practice in the last year, compared with other retailers,” she said.

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