Supermarket Morrisons has apologised to its suppliers after it was found to have indirectly required suppliers to pay lump sum payments in breach of the Grocery Suppliers Code of Practice (GCSoP).
In a clarification to the Code issued on 20 June 2016, The Groceries Code Adjudicator (GCA) said that following evidence supplied in June and July 2015 there was evidence that there may have been a code breach and that it wrote to ‘Wm Morrison Supermarkets plc Chief Executive Officer alerting him to the issue. As a result, Wm Morrison Supermarkets plc immediately launched an extensive internal investigation, including reviewing 66,000 emails, interviewing employees and taking disciplinary action where appropriate. Further training for staff on negotiation techniques permitted by the Code was immediately put in place, with particular focus on variation to existing Supply Agreements.’
Morrison’s chief executive David Potts said the retailer has “completely changed the way it works with suppliers.
“These events happened a year ago and since then much has been achieved to ensure they don’t happen again. However, we are sorry they happened in the first place,” he added. “I have brought in a new management team who have modernised and simplified all of our buying practices. We have also reorganised and retrained our buying team.”