COMPETITION COMMISSION’S FINAL REPORT ‘NOT ENOUGH’ SAYS BHETA

The creation of a new strengthened and extended Groceries Supply Code of Practice (GSCOP) and a recommendation by the Competition Commission (CC), in its final report into UK groceries retailing, to establish an independent Ombudsman to oversee and enforce the code ‘will do little to assist or protect the non-food manufacturers who supply UK grocery retailers in ever increasing numbers’.

This is the view of the British Home Enhancement Trade Association (BHETA), as voiced by its chief executive officer David French, whose members supply a wide range of housewares, brush and DIY products to UK grocery retailers.

“As the grocery retailers increase their non-food offer, our members face exactly the same concerns as those food suppliers this report seeks to assist and protect, but the CC has not widened its brief to include non-food suppliers in its recommendations, which is very short-sighted,” David commented.

“If the terms of reference for both these recommendations were to be extended to cover all types of suppliers to grocery retailers, then we would actively support them in line with our policy of encouraging members to follow business best practice and agree mutually equitable trading terms with retailers which afford consumers the best possible quality/price ratio on the ranges of products they supply.

“However, as they stand these recommendations specifically exclude suppliers of: ‘food and alcoholic and non alcoholic drinks sold for consumption in the store where it is purchased, petrol, clothing, DIY products, financial services, pharmaceuticals, newspapers, magazines, greetings cards, compact discs, video and audio tapes, toys, plants, flowers, perfumes, cosmetics, electrical appliances, kitchen hardware, gardening equipment, books, tobacco and tobacco products’. Given the supermarkets growing presence in all these product sectors, to continue these exclusions, is clearly not in the suppliers or consumers best interests, and will only create a two tier system which will add unnecessary complexity and cost.”

BHETA will therefore continue to lobby the CC to widen its brief to include non-food suppliers within its recommendations.