Supermarket watchdog now unnecessary, says retail body - FT

Supermarket watchdog now unnecessary, says retail body - FT

By Andrea Felsted, Retail Correspondent

Published: February 4 2010 02:00 | Last updated: February 4 2010 02:00

A strengthened code of practice governing relations between food retailers and their suppliers, in force from today, makes a supermarket ombudsman "unnecessary", according to the British Retail Consortium.

Supermarkets must from today comply with a beefed up and extended Grocery Supplier
Code of Practice, which will be included in all retailers' contracts with their suppliers, and is designed to provide a clearer framework for these agreements. There has been a code of practice for the four largest supermarkets since 2002.

However, it is being strengthened following the Competition Commission's two-year investigation into the £125bn a year grocery market.

The extended code will apply to 10 retailers with a grocery turnover of more than £1bn a year.

It comes into place as both the government and the opposition say they will introduce a new ombudsman to police it - a move that has been attacked by retailers, but welcomed by suppliers.

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