Watchdog names Asda as worst in UK for supplier treatment

Supermarket Asda has gained the unwelcome title of the worst in the UK for treatment of its suppliers, according to an industry watchdog.

The Grocery Code Adjudicator found that it had topped the table, ousting fellow Yorkshire supermarket Morrisons after David Potts undertook a rehaul in the way it dealt with suppliers over the past year.

Around 12% of Asda suppliers said the chain rarely or never complied with the Grocery Supply Code of Practice.

The code covers 10 retailers that sell over £1bn of groceries a year.

For the fourth year running, Aldi topped the overall table in which suppliers rank their perception of retailers’ compliance with the Code; with Sainsbury’s as the highest placed of the big four.

The 2017 survey saw a large increase in the number of suppliers participating (1220), up 320% from the first poll in 2014.

There was also a decline in reported breaches of the code, down to 56% from 62% in 2016, and a high of 79% although delay in payments continues to be the issue of highest concern to suppliers, the GCA said.

Christine Tacon of the GCA said: “[I am] pleased to report that suppliers are recognising that Tesco is continuing to improve; as is Morrisons, following a step change in its engagement with suppliers.”

A spokesperson for Asda told the Guardian: “We’ve listened to the GCA and worked to improve our ways of working with suppliers to ensure we’re doing our job in the best way we can.

“This includes ensuring our smaller suppliers are paid within 14 days, simplifying our processes, and eliminating some of our supplier charges and audits.

“We will also be introducing further changes, including the expansion of a dedicated helpdesk to ensure our suppliers have a single point of contact to raise any concerns.”