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Inflation strains supplier relationships with retailers: GCA

16-Jan-2023 - Last updated on 16-Jan-2023 at 11:46 GMT

Inflationary pressures could lead to larger problems down the line and is already straining relationships between suppliers and retailers

Inflationary cost pressures continue to strain relationships between suppliers and retailers and threaten greater issues down the line, warned Groceries Code Adjudicator (GCA) Mark White.

His comments follow the launch of the GCA’s tenth annual groceries sector survey, allowing suppliers to share how they have been treated by the 14 large retailers.

The impact of inflation on food and drink firms would no doubt be a major issue highlighted in this year’s survey, with White noting how it had strained relationships between suppliers and retailers.

‘Other issues to arise’

“I am concerned about how the retailers are responding to CPI requests and whether this pressure is causing other issues to arise,” White added.

“I want to hear from as many suppliers as possible so I can understand the ongoing impact of inflation and other issues affecting suppliers. This will help me to work with the retailers to ensure they are treating all suppliers fairly and legally.”

The survey, run by the independent polling company YouGov, allows suppliers to confidentially tell the Adjudicator, Mark White about their experiences dealing with the retailers and covers a wide range of themes. The responses will be used by White to help him better understand the ongoing impact of inflation and other issues affecting suppliers.

2022 survey

Last year’s survey saw 2,500 responders share their concerns, including about how retailers had responded to CPIs – the most raised issue in the last five years.

Perceived Code-compliance also fell compared to the previous survey. Responses to the 2023 survey will show whether suppliers believe retailers have improved or whether compliance has worsened again during tough trading conditions.

This year’s survey is also the first since Amazon.com was designated as a retailer in March 2022, allowing suppliers to provide feedback on its performance throughout the past year.

The GCA survey is open for the next six weeks, closing on 26 February, with the results published later in 2023. YouGov will conduct anonymous follow-up interviews with a select group of respondents to explore supplier concerns in greater detail.