Monday 25 June 2018 2:34 pm

Asda ranked worst big supermarket for treatment of suppliers while Iceland comes last overall

Asda ranks lowest among the big four supermarkets for treatment of suppliers, according to the regulator's annual report released today.

Out of all 10 grocers assessed by the Groceries Code Adjudicator survey, Iceland ranked last and the Co-op was second from the bottom.

Some eight per cent of Asda suppliers reported that the supermarket "rarely" or "never" complied with the code, while 11 per cent said the same of Co-op and 14 per cent of Iceland.

Aldi topped the rankings for the fifth year in a row, the only grocer to have more than half its suppliers (58 per cent) agree that it "consistently" follows the code.

“Since opening our first UK store more than 25 years ago, we have engaged in honest dialogue with suppliers to give them clarity and stability in their dealings with us," commented Julie Ashfield, managing director of buying at Aldi. “This builds long-term relationships and allows us to provide great products to customers and a fair deal to suppliers.”

But Asda was among the fastest-improving retailers this year, reducing the number of negative responses from 11 per cent. This put it alongside the Co-Op, Tesco and Morrisons as one of the most improved.

The groceries code adjudicator Christine Tacon said: “My 2018 survey tells a very positive story and it is no coincidence that the four most-improved retailers this year have each faced increased GCA scrutiny and heightened levels of GCA engagement through investigations and case studies."

Earlier this year the GCA launched an investigation into Co-op, while Tesco was the subject of an investigation in 2016.

Commenting on the survey results, An Asda spokesperson said: “Our suppliers are a vital part of our business and we are pleased that this year’s report recognises the improvements that Asda has made over the last twelve months. We remain determined to improve even further and build on our strong partnership with our suppliers.”

MPs have raised concerns that Asda and Sainsbury's could squeeze suppliers for lower prices once the two businesses merge.

Sainsbury's was fourth highest in this year's rankings, with just five per cent of suppliers saying it "rarely" followed the code.

But of the big four, Tesco ranked the highest, coming second behind Aldi overall.