Tesco faces investigation over how it works with suppliers

Tesco is to be investigated by the Groceries Code Adjudicator (GCA) concerning its relations with suppliers, focusing on possible payment delays and the role of payments for the better positioning of goods.

“Christine Tacon (GCA adjudicator) has launched an investigation into Tesco, having formed a reasonable suspicion that the retailer has breached the Groceries Supply Code of Practice,” said a GCA statement, issued today.

“The adjudicator took the decision after considering information submitted to her relating to practices associated with the profit over-statement announced by the retailer in September 2014.

She has discussed the practices with Tesco and now needs more information from direct suppliers and others to determine what further action to take.”

The investigation is expected to take place over the next 6-9 months, with the adjudicator calling for evidence to be submitted by April 3, 2015.

Tesco, responding to the GCA action, said it had worked closely with GCA, since its creation, to put strong compliance processes in place, carrying out an internal review, the results of which had been shared with the GCA.

Tesco also said it was changing the way it worked with suppliers.

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