Summary of Asda's GSCOP Annual Compliance Report for 2025

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 (“GSCOP” or the “Code”) which applies to fourteen designated grocery retailers, including Asda, and governs our dealings with direct grocery suppliers (“Suppliers”).

Every year under the Order and Code, we are required to 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 fifteenth report, covering the period from 1 January 2025 to 31 December 2025 (inclusive), to the CMA and the GCA on 30 April 2026.

Our Highlights

We anticipated that 2025 was going to be a busy and challenging year in equal measure. For customers it has been an uneven picture as while the average household spending power has increased, low-income families have become worse off compared to 2024. The year was also a challenging one for Asda, primarily due to the disruption caused by the IT separation from our former parent company Walmart, which had a notable impact on sales and performance. Despite this, there were several highlights during the year including:

The launch of the Rollback to Asda Price programme firmly re-established Asda as the UK’s lowest-priced traditional supermarket. This position is confirmed by independent price comparisons such as the ‘Which? Big Shop Index’, which Asda topped every month in 2025 and The Grocer 33 weekly price comparison, which found Asda was the cheapest supermarket for 30 out of a possible 49 weeks during the year.
Asda’s rapid expansion in the UK convenience sector, with the opening of c20 new stores last year, taking the total number of convenience sites to c500. These stores continue to outperform the wider convenience market, and bring Asda’s great value and low prices to more local communities;
The strengthening of Asda’s leadership team, including the return of Darren Blackhurst as Asda’s Chief Commercial Officer and the appointment of Rachel Eyre as Chief Customer Officer;
The introduction of the new Supplier Charter, containing ten key principles which provide the key foundations for a successful Supplier relationship founded on mutual trust and respect;
The resetting of Asda’s commercial strategy, focusing on our ‘Formula for Growth’ which was shared with Buying colleagues and Suppliers alike during Quarter 3 and Quarter 4 2025. This focuses on offering the best possible value to all our customers by making Asda the price leader, offering the best choice of products, always buying responsibly and professionally and lowering prices for all;
Asda’s store investment programme, including full shop-floor refurbishments featuring simplified layouts, modern lighting, and refreshed signage designed to create a brighter, more welcoming environment.

Asda remains committed to continuing to support households navigating financial challenges throughout 2026 and beyond.

The GCA Annual Survey 2025

Asda is fully committed to operating in compliance with the Code and working collaboratively with our Suppliers to improve ways of working. Every year the GCA carries out a Survey, giving Suppliers the opportunity to provide anonymised feedback on our performance under the Code. Of the approximately 700 Suppliers who provided anonymous feedback in the 2025 Survey:

94% of Suppliers in 2025 identified that Asda consistently complies with the Code. This is testament to Asda’s GSCOP programme and reflects the importance Asda places on compliance with the Code when working with grocery Suppliers;
69% of Suppliers agree that we conduct our trading relationships fairly, in good faith and without duress; and
2% of Suppliers raised a Code-related concern, the majority of which agree the issue was resolved satisfactorily.

Given the level of change in Asda’s business which we have asked Suppliers to adapt to, Asda is encouraged by the results and can see we are conducting our trading relationships fairly. Equally, Asda acknowledges from Suppliers’ feedback that there are some key areas of opportunity, and the Asda business remains firmly committed to working on these to drive continuous improvements.

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 GSCOP programme and improve our ways of working with Suppliers. Some of our highlights from 2025 include:

Doubling down on our focus on addressing the three main areas of opportunity, based upon the Supplier Survey feedback, namely (i) paying our Suppliers; (ii) de-listing; and (iii) forecasting. Asda’s GSCOP team has led working groups, which have involved key stakeholders across the business, to review current ways of working and identify how improvements can be made. Steps taken have included additional instructor-led training to our Finance teams during 2025, the tightening of internal de-listing processes and supplier engagement with forecasting.
Delivering training to 190 new and existing Buying colleagues (across Asda and IPL), whose role touches and concerns the Code. This training included bespoke, scenario-based instructor-led GSCOP training sessions and supplementary guidance material. The training and guidance delivered and embedded into the Buyer materials introducing Asda’s new commercial strategy was well-received by colleagues and continued to develop understanding of the Code.
Collaborating with the business as part of the introduction and implementation of the commercial strategy, ensuring this is introduced in a way which upholds Code-compliance a commitment which is reinforced by the introduction of Asda’s Supplier Charter
Continuing to support the Asda Future team, ensuring that the changes to supply chain operations and in the introduction of Asda’s Data Reporting Hub are managed in a Code-compliant manner; and
Attending the GCA’s Supplier Conference in September 2025, supporting Supplier awareness and engagement with the GCA and the Code.

Reportable matters

In accordance with the Code and Order, Asda has identified and reported on all instances where Suppliers have alleged a breach of the Code. A total of 25 reportable matters were initiated during the Current Reporting Period (2025). Seven matters will be carried over to the next reporting period (1 January 2026 to 31 December 2026 (inclusive)). We define all matters to be ‘ongoing’ where it is unresolved by 31 December 2025, which includes two matters which were initiated during the Previous Reporting Period.

Asda’s Code Compliance Officer

Asda’s Code Compliance Officer, Graeme Morrison, is available as an independent point of contact for all Suppliers who wish to raise a Code-related matter or query. Graeme encourages open and honest feedback in respect of our performance under the Code and you can email him at [email protected]. All matters will be treated confidentially, and Suppliers will not face negative consequences as a result of raising an issue.

Thank you in advance for your on-going support.