ASDA Stores Ltd
Summary of GSCOP Annual Compliance Report 2012
On 4 February 2010, a new regulation called The Groceries (Supply Chain Practices) Market Investigation Order 2009 (let’s call it the “Order”) came into force.
It implemented something called the Groceries Supply Code of Practice (let’s call that the “Code”) which applies to certain grocery retailers, including us – Asda – in our dealings with suppliers.
As part of our compliance with this Order, we’re required to submit an annual compliance report to the Office of Fair Trading (“OFT”) to detail our compliance with the Code, any alleged breaches of Code and any disputes with suppliers. We’re also required to post this notice on our website.
We’re pleased to say we delivered our second report, covering the period from 1 January 2012 to 31 December 2012, to the OFT on 30 April 2013.
During the reporting period, we took several steps to achieve compliance.
These included sending out letters to new grocery suppliers explaining their rights under GSCOP and providing comprehensive training on the Code to all members of our buying team. That’s involved training for all new members of the buying team and annual refresher training via computer based learning.
We received a small number of alleged breaches of the Code during the reporting period. All of these have been resolved or withdrawn. We’re pleased to say that because, in our view, of the effective way that we work with suppliers to deal with their concerns, there have been no instances of a supplier escalating their concern to Asda’s Code Compliance Officer directly to raise a dispute (as defined in Article 11(2) and (3) of the Order). Nor have there been any instances of disputes referred to arbitration (as set out in Article 11 of the Order).
Compliance with the Order and Code is really important to Asda, and we will continue to take steps to achieve compliance to the fullest degree.
If you would like to find out more about the Groceries Supply Code of Practice, you can do so at www.competition-commission.org.uk.