The 2023 results are in!
I was pleased to publish the results from my 2023 groceries sector survey last week.
For the third year in a row, we had more than 2,000 responses to the survey run by YouGov on the GCA's behalf and I would like to thank everyone who took the time to complete the survey. The information you provide is invaluable for aiding my understanding of the trends affecting the sector and potential risks of Code breaches by the Retailers.
I would also like to extend my gratitude to the Retailers and trade associations who shared the survey and encouraged suppliers to respond.
The survey results, echoing the 2022 survey, highlight the impact that inflation has had on suppliers and their relationships with Retailers. 91% of suppliers asked for a cost price increase (CPI) in the past 12 months and I was disappointed that those who experienced either a refusal to consider a CPI or an unreasonable delay in agreeing or implementing a CPI rose from 26% in 2022 to 28%. It is the most raised issue in the last 6 years. Although there are suggestions that inflation may have reached its peak, prices will continue to rise for some time and I will continue to monitor Retailers' handling of CPI requests. As prices start to fall in some limited areas, I will also be looking at Retailers' requests for cost price decreases and want to hear from suppliers who have concerns about the fairness of Retailer processes.
In addition to compressing margins throughout the supply chain and reducing consumers' spending power, the survey indicates that inflation is likely to be exacerbating other issues faced by suppliers:
- One quarter (up by 7% on 2022) of suppliers experienced inadequate processes and procedures in place to enable invoice discrepancies to be resolved quickly.
- 16% of suppliers said they had experienced data input errors including price errors not resolved promptly (within 7 days), increasing from 10% in 2022.
I believe that often fraught and lengthy CPI negotiations may have contributed to an environment where mistakes are more likely, directly increasing the occurrence of these issues.
Other issues were also raised including delays in payment, obligations to contribute to marketing costs and issues related to forecasting all of which saw an increase in the number of suppliers impacted. The results pack includes a breakdown of all the issues raised.
However, there is also plenty of good news contained within the results. I was pleased to see that suppliers believe Code compliance has improved across the sector. 8 of the 13 Retailers included in the 2022 survey improving their overall compliance score by 3% or more, while only two Retailers saw a decline in their scores.
In my engagement with suppliers, I have been highlighting both my own and also the Retailers' Code Compliance Officers' (CCOs) commitment to confidentiality, so I was glad to see supplier confidence in raising an issue with the GCA rise by 3% to 58%. I also worked with all the CCOs to agree an extension to the confidentiality commitment to protect and strengthen relationships with suppliers. Concerns about confidentiality remain the main reason for not reporting an issue however the number of suppliers highlighting it has fallen by 12% since 2019. I hope that as more suppliers become aware of the extension, this figure declines further over future surveys.
Turning my attention to the individual Retailers, I want to congratulate M&S which came top of the rankings this year with 99% Code compliance; the highest score ever received. I also want to mention Iceland, who were the most improved Retailer with a 6% increase in their score.
At the other end of the rankings, Amazon scored 59% which is significantly below the other 13 Retailers. This is the first time Amazon were covered by the survey and their score is similar to the lowest scores in the first survey undertaken by the GCA ten years ago. In that survey, scores for overall compliance with the Code for the ten then-designated Retailers averaged 73%. In the 2023 survey, after a decade of action by the GCA, suppliers reported significantly improved compliance, with an average of 92%.
I will be working with Amazon, and all the other Retailers, to pinpoint the most pressing issues and develop solutions that will improve their treatment of suppliers and therefore their scores in future surveys.
YouGov is set to carry out a series of deep dive interviews with suppliers on the GCA's behalf, to provide greater depth of understanding about the issues raised in the survey. As in the last couple of years, YouGov will discuss what they learned from the interviews at my annual conference which will take place on 28 September 2023. I will share details of the conference and how to sign up on the GCA website soon.
Future of the GCA
You may have seen the announcement that the GCA will not be merged with the Competition and Markets Authority as the Government recognises the GCA's importance in "ensuring our food supply chains function as they should." I welcome this news and the certainty it gives to the groceries sector.
Finally, if you received this newsletter via email, you will have noticed it has a new look and feel. I hope you like it. If you have feedback, please send it to
