Suppliers’ requests for cost price increases are to be a focus of the latest retail industry survey by the Groceries Code Adjudicator.
The survey, which is run by independent polling company YouGov, enables suppliers to confidentially tell adjudicator Mark White about their experiences dealing with the retailers. This year will also be the first time suppliers can give feedback on Amazon, which was added to the list of GCA-designated retailers last May.
While the survey covers a wide range of themes to help the adjudicator understand issues affecting suppliers, he is this year particularly interested in cost price increases (CPI).
The 2022 survey had more than 2,500 respondents, with cost price increase (CPIs) the most raised issue in the past five years. More than a quarter of the direct suppliers who responded to the survey said they had experienced a request for a CPI being refused or the implementation being unreasonably delayed.
Suppliers highlighted other issues in 2022 including around de-listing (16% of suppliers), forecasting errors (18%) and delays in payments (12%).
”Since my last survey, inflation has continued to affect the entire groceries sector, straining the relationships between retailers and suppliers,” said White. “I am concerned about how the retailers are responding to CPI requests and whether this pressure is causing other issues to arise.”
He added that he wanted to hear from as many suppliers as possible so he 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,” White said.
The survey is open at YouGov from 16 January and 26 February 2023. The retailers covered by the code are: Aldi, Amazon, Asda, B&M, Co-op, Home Bargains, Iceland, Lidl, M&S, Morrisons, Ocado, Sainsbury’s, Tesco and Waitrose.
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