Notice

Letter to retailers about payment terms

Read the letter Christine Tacon, the Groceries Code Adjudicator, has sent to retailer Code Compliance Officers about payment terms.

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By email to retailer Code Compliance Officers (CCOs).

26 March 2020

Dear CCO,

Payment terms

As you know, the Code covers delay in payments and your business has over the time I have been GCA worked hard to improve performance, but one of the areas in which I am frequently asked to intervene is in relation to payment terms, which are not covered by the Code.

I have always resisted saying anything about them as a result. In the current groceries supply situation, however, cash flow is critical for many of your suppliers.

Some retailers already pay small suppliers within 14 days and have recently accelerated those payments still further, which is appreciated. Anything else you are able to offer your suppliers to help them through this extremely difficult time would be very welcome.

Yours sincerely,

Christine Tacon

Published 26 March 2020