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Summary of Asda's GSCOP Annual Compliance Report for 2023

April 28, 2022 11:42am
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Background

The Groceries (Supply Chain Practices) Market Investigation Order 2009 (the “Order”) has been in force since 4 February 2010. The Order implemented the Groceries Supply Code of Practice (the “Code”) which applies to fourteen designated grocery retailers, including Asda, and governs our dealings with direct grocery suppliers (“Suppliers”).

Every year we submit an Annual Compliance Report to the Competition and Markets Authority (the “CMA”) and the Groceries Code Adjudicator (the “GCA”) to detail our compliance with the Code, any alleged breaches of the Code and any disputes with Suppliers.

We delivered our thirteenth report, covering the period from 1 January 2023 to 31 December 2023 (inclusive), to the CMA and the GCA on 30 April 2024.

Our Performance

During 2023, Asda was named the lowest price supermarket by ‘the Grocer’ for the 26th consecutive year, we completed the acquisition of the majority of EG UK which accelerated our growth in the convenience and food to go markets and continued to build upon the success of our Asda Rewards loyalty programme, bringing Asda’s value closer to millions of customers. These achievements would not have been possible without the support of our Suppliers.

Asda is pleased with its performance in the GCA Annual Survey 2023. Of the 681 Suppliers who participated in the Survey, 94% said we comply with the Code ‘consistently’ or ‘mostly’ and 2% raised a Code-related issue. We are grateful to each Supplier who took the time to complete the Survey; we value the feedback and are using the results to make sustainable and meaningful improvements to our ways of working. Some of our highlights in 2023 include:

  • Welcoming the GCA to our Wakefield Chilled Distribution Centre in May 2023 and provided a comprehensive walkthrough of our processes from forecasting and ordering through to receiving goods, payment, and resolving Supplier issues;

  • Attending and participating in the GCA’s Supplier Conference in September 2023, supporting Supplier awareness and engagement with the GCA and the Code;

  • Delivering training to 177 new and existing Buying colleagues, whose role touches and concerns the Code (including launching a new, interactive training module which is designed to improve our handling of cost price negotiations); and

  • A 20% reduction in the number of matters we are required to report to the CMA and GCA.

Reportable Matters

16 reportable matters were raised in 2023. In line with the GCA feedback, we define all matters to be ‘on-going’ where it is unresolved by 31 December 2023. Two matters will be carried over to the next reporting period (1 January 2024 to 31 December 2024 (inclusive)).

Of the 16 matters raised in 2023, 13 related to payment issues, forensic audit activity, and de-listing.

Asda’s Code Compliance Officer

We are committed to trading with our Suppliers fairly, in good faith and without duress. We are proud of the strong, collaborative relationships that we have built with our Suppliers. With that in mind Asda’s CCO, Graeme Morrison, encourages open and honest feedback with respect to our performance under the Code. You can contact Graeme at [email protected] Any Code-related concern will be treated confidentially, and Suppliers will not face negative consequences as a result of raising an issue.

We are pleased with the progress we have made this year, but we know that there is always room for improvement. We also know that the growth of our business can only happen with the support of our Suppliers. Thank you in advance for your on-going support.

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