Watchdog reprimands Yorkshire’s supermarkets as sales decline hits

EACH of the Big Four supermarkets have lost market share, with Asda and Morrisons’ sales hit again as they are chastised over their treatment of suppliers.

Morrisons’ sales fell by 2.4%, reflecting the ongoing impact of store disposals, whilst at Asda they were down by 5.9% according to results from Kantar Worldpanel.

This comes a day after Morrisons and Asda were announced as two of the three worst performers for supplier relations.

The Groceries Code Adjudicator said that the two Yorkshire supermarkets, along with Iceland, treat their suppliers the worst of the top 10 UK supermarkets.

It emerged last week that Morrisons had been forced to repay money and discipline staff after demanding £2m lump sums from suppliers although the grocery watchdog said Morrisons had taken “swift” action to rectify the matter.

The GCA has the ability to fine supermarkets up to 1% of their turnover if they do not comply.

Last month the supermarket announced that in the 13 weeks to 1 May, like-for-like sales excluding fuel were up 0.7% (up 1.2% including fuel) continuing an upward trend for the grocer. It also announced that it would be cutting the price of 800 everyday items in a bid to win the war against discount retailers Lidl and Aldi.

Meanwhile it has been all change at Asda. Earlier this month it was announced that Asda’s chief executive, Andy Clarke, would be replaced by a global Walmart executive.

Sean Clarke pipped presumptive replacement and COO Roger Burnley to the post. He will have his work cut out for him following the seventh consecutive quarter of sales decline for the grocer.

The Leeds-based supermarket has also been hit by an equal pay dispute, which was given the green light by the Court of Appeals last week, prompting a change in counsel.