GovWire

July was a busy month here at the GCA. I met all 14 Code Compliance Officers (CCOs) to discuss the most pertinent issues facing the sector as part of my regular engagement with the designated retailers (Retailers), while my team continued preparations for my annual conference which will take place in September. In addition, I published my 2022-23 annual report and the government announced the outcome of its third statutory review of the GCA.

Engagement with the Retailers

In July, I met each of the 14 CCOs as part of my regular engagement with the Retailers. During the meetings, we discussed issues affecting each individual Retailer in addition to how they are each responding to their 2023 survey results, cost price increases and decreases, and payment practices.

No Requirement

I also reminded the CCOs in each meeting about the restrictions in the Code on Requiring [1] suppliers to take certain actions, including paying as a condition of being a supplier. If I believe that any of the Retailers may have Required an action that it should not have, I may ask the Retailer to provide evidence to show that it is more likely than not that it did not Require the action. Retailers need to ensure that they will be able to provide that evidence if necessary.

If you are a direct supplier and you believe that a Retailer has Required you to take an action which it shouldnt have done, please either speak to the CCO or contact me via email, through Tell the GCA or by calling my enquiries number: 0207 215 6537. Regardless of the way in which contact is made confidentiality is assured, whether by the CCO or by the GCA. In addition, each Retailer has confirmed that it will not suffer any negative consequences if a supplier contacts them about a Code issue.

Annual Conference

The GCA annual conference, titled A decade of improving fairness for suppliers, will take place on 28 September 2023 and will be a hybrid event allowing participants to join online or in person.

The conference, which is free to attend, will bring together supplier representatives, Retailers, and other experts to reflect on changes to the grocery sector over the past decade, ongoing challenges and how to resolve them, support available for suppliers and future priorities.

To join the hundreds of attendees already signed up to the conference, register now.

Annual report

I published my 2022-23 annual report on 20 July 2023.

It is the GCAs tenth annual report and covers a year during which inflation continued to affect the entire grocery sector. As my 2023 survey results showed, Retailers responses to cost price increase (CPI) requests was the number one issue affecting suppliers for the second year running.

I describe in the report how I have used the 7 Golden Rules, published in 2022, to work with the Retailers to improve how they respond to CPI requests. The 2023 survey results showed that between 2022 and 2023 the number of suppliers reporting they had experienced a refusal to consider a CPI or an unreasonable delay in implementing an agreed CPI remained stable when you take into account the extra Retailer added in the 2023 survey. Though there is more to do, I was pleased to see no increase in supplier concerns notwithstanding the increase in the number of CPI requests made in the twelve months preceding the 2023 survey compared to those made in 2022.

The annual report also details the improvement in overall Code compliance scores for 11 of the 13 Retailers included in the 2022 survey, how I have encouraged Retailers to better support their inexperienced buyers and worked with them on improving their goods-in processes to rectify issues reported by suppliers.

In the report you can also read:

• an update on the operation of the GCA, including my collaborative approach to working with Retailers and my strategic objectives;
• the GCAs statutory reporting requirements;
• a corporate governance report; and
• an update on the GCAs financial position.

Statutory review

In the same week as I published my annual report, the Department for Business and Trade (DBT) published its third statutory review of the GCA, which it undertakes every three years. In the report, DBT concluded that the overwhelming view of retailers, suppliers and others is that the GCA is a highly regarded, efficient and effective regulator.

I was very pleased that the review showed broad support for my collaborative approach to regulating the 14 Retailers and I know the industry has welcomed the decision not to abolish the GCA or merge it into the Competition and Markets Authority.

The statutory review was an opportunity for me to understand your views about how the GCA is operating. I always welcome feedback about my approach and encourage you to get in touch if you think there are any areas where change or greater focus is required my confidentiality is assured.

Code Confident Pack

I regularly update my Code Confident Pack so it contains current CCOs contact details, information about the Code and the GCA, and links to further information including guidance, best practice statements, and details of training providers. Please take a look whether you are new to the Code or keen to refresh your knowledge.

I look forward to seeing as many of you as possible on 28 September.

Mark White

[1] a Retailer will Require particular actions on the part of a Supplier if the relevant Supplier does not agree, whether or not in response to a request or suggestion from the Retailer, to undertake an action in response to ordinary commercial pressures. Where those ordinary commercial pressures are partly or wholly attributable to the Retailer, they will only be deemed to be ordinary commercial pressures where they do not constitute or involve duress (including economic duress), are objectively justifiable and transparent and result in similar cases being treated alike. The burden of proof will fall on the Retailer to demonstrate that, on the balance of probabilities, an action was not Required by the Retailer.

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