Gifts Today magazine

Groceries Code Adjudicator to investigate Tesco

Industry watchdog the Groceries Code Adjudicator (GCA) will look at the relationships between Tesco and its suppliers.

The investigation is the third facing the supermarket giant following on from the Serious Fraud Office and Financial Reporting Council’s probes after the accounting scandal, which resulted in a £260m black hole in profits.

Adjudicator Christine Tacon said she had a “reasonable suspicion” that the code had been breached.

The adjudicator will look into Tesco’s profits and alleged delays in payments to suppliers.

A Tesco spokesman said: “We have worked closely with the office of the adjudicator since its creation to put in place strong compliance processes.

“Following our announcement last September regarding commercial income, we have worked with her to identify any relevant [Grocery Suppliers Code of Practice] issues.

“An internal review we carried out and shared with the GCA identified some areas of concern.

“We have taken action to strengthen compliance and, as we have announced, we are changing the way we work with suppliers.

“We will continue to co-operate fully with the GCA as she carries out her investigation and welcome the opportunity for our suppliers to provide direct feedback.”

The investigation is expected to take up to nine months.

Social Links