Supermarket payback: How to overcome suppliers’ fear of complaining
The interim review of the Food and Grocery Code of Conduct tries to overcome suppliers’ fear of retribution from major retailers, but it may not go far enough.
Judging by the number of times “fear of retribution” appears in Craig Emerson’s review of the Food and Grocery Code of Conduct – 23 mentions across 15 pages – relationships between food suppliers and the major supermarkets remain far from healthy.
According to the interim report released on Monday, fear of retribution has compromised the effectiveness of the code, which was introduced in 2015 to stamp out harmful practices stemming from the massive power imbalance between the major supermarket chains and suppliers.
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Sue Mitchell writes the fortnightly Window Shopping column for the Financial Review and has covered retailing for over 30 years. Connect with Sue on Twitter. Email Sue at smitchell2045@gmail.com
