GCA annual report flags compliance pressures in UK groceries sector
Inflationary pressure and changing commercial strategies across the UK grocery sector continue to test supplier relationships during the period covered by the Groceries Code Adjudicator's 2025/26 annual report. The report says overall compliance with the Groceries Code remains generally high despite a small increase in suppliers reporting issues.
Highlights
- The Groceries Code Adjudicator's 2025/26 annual report highlights proportionate regulation of 14 UK retailers and an ongoing investigation into Amazon.com, Inc. for potential Groceries Code breaches.
- The GCA plans to reverse the dip in perceived Code compliance in 2026/27 and will intensify focus on payment delays, forecasting, marketing costs, and de-listing practices through targeted retailer engagement.
- The Adjudicator underscores the role of the annual supplier survey and the Tell the GCA anonymous platform in enhancing sector accountability and encouraging confidential supplier reporting.
Regulatory priorities and annual findings
As reported by GOV.UK, the Groceries Code Adjudicator has published its 2025/26 annual report, setting out its regulatory work over the period and an update on its financial position.The report says the GCA regulated the 14 designated retailers proportionately, including through the use of its statutory powers. During the period, it also launched a targeted investigation into whether Amazon.com, Inc. breached paragraph 5 of the Groceries Code.
The watchdog says it also acted to help suppliers raise Code issues with retailers confidentially and without negative consequences. That effort comes as the sector continues to deal with cost pressure and evolving retailer systems and commercial strategies.
Supplier confidence and sector oversight
In his foreword, the Adjudicator says he aims in 2026/27 to reverse the fall in perceived Code compliance shown in this year's survey and to reduce the Code issues suppliers report most.He says the GCA will continue to focus proportionately on compliance issues tied to payment delays, forecasting, marketing costs and de-listing practices. Those priorities are set to be pursued through targeted engagement with code compliance officers and senior retailer leadership, close monitoring of retailers' actions and assurance arrangements, and continued engagement with suppliers.
The annual survey remains a core tool for measuring progress and holding the sector to account, according to the foreword. The Adjudicator also says he wants to build confidence in the GCA's regulatory approach and encourage suppliers to raise concerns confidentially, including through the Tell the GCA anonymous reporting platform.
Our earlier analysis of Tesco (TSCO) looked at the retailer’s share performance, highlighting how its ongoing share buyback programme and gains in sales and UK grocery market share were supporting investor sentiment. It also noted a largely range-bound technical setup, with traders watching key resistance and support levels for signs of the next move.
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