Tesco and Asda have warned that changes to the code of practice governing how supermarkets do business with their suppliers will have detrimental effects on the food retail sector.

Asda said that the “world has moved on” since the proposals were first flaoted by the Competition Commission a year ago. According to both retailers, the changes to the code of practice would mean supermarkets forking out more money at a time when costs were already high.


Under the proposed Grocery Supply Code of Practice (GSCOP) retrospective changes to the terms and conditions of contracts would be outlawed, as would the practice of suppliers being liable for the cost of goods stolen from supermarkets’ shelves and thrown out because they have not been sold.


Tesco executive director Kucy Neville-Rolfe told The Daily Telegraph that the changes add “substantial costs to an industry that is generally working well for the consumer”.


Tesco also said that the new system would involve a huge extra workload for supply chain staff and lead to them sending an extra 2 million emails a year.

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