Amazon Ranked Lowest Again by UK Grocery Suppliers Despite Modest Progress
Summary
Amazon has again ranked last in UK grocery supplier compliance, despite showing some improvement. The Groceries Code Adjudicator's 2025 survey revealed Amazon's 66.4% compliance rate, significantly behind competitors, amidst an ongoing investigation into its payment practices. While Amazon acknowledges the need for further improvement, the persistent perception gap poses potential reputational and regulatory risks for the company, which investors will closely monitor as it expands its grocery operations.
Amazon Ranks Last in UK Grocery Supplier Compliance, Despite Modest Improvement
Related Stock: AMZN Publication Date: 2025-06-25 08:58:47
Amazon (NASDAQ:AMZN) has once again been ranked last among UK grocery retailers for compliance with the Groceries Supply Code of Practice (GSCOP), according to the 2025 survey conducted by the Groceries Code Adjudicator (GCA).
While the e-commerce giant demonstrated some year-over-year progress, with 66.4% of suppliers reporting Amazon "consistently" or "mostly" complied with the Code, up from 47% in 2024, the company still significantly lags behind competitors. For instance, Lidl achieved a 91.1% compliance rate.
Significance of GSCOP Compliance
The GSCOP is designed to ensure that major retailers treat their suppliers fairly, particularly concerning payment timelines, dispute resolution, and contractual terms. Amazon became subject to this code in 2022 following the expansion of its grocery operations in the UK, including Amazon Fresh and its online marketplace.
These survey results are particularly noteworthy given the GCA's ongoing investigation into Amazon's supplier payment practices over the past three years.
Amazon's Response and Industry Perception
An Amazon spokesperson acknowledged the survey findings, stating that the company has been actively working to enhance supplier relationships. They highlighted improvements in dispute resolution processes, payment practices, and the introduction of dedicated account management. The spokesperson commented, "We know from listening to our grocery suppliers that these changes… are making a positive difference," while also admitting there is "much more to do."
Despite Amazon's stated efforts, a substantial perception gap persists between the company and its peers. The nearly 25 percentage point difference from the next-lowest performer, Lidl, underscores the challenge Amazon faces in aligning its practices with supplier expectations and industry standards.
Financial and Investor Implications
Although supplier sentiment does not directly correlate with immediate financial performance, it can indicate potential reputational risk, increased regulatory exposure, and supply chain friction. These are all factors that investors typically monitor closely.
Investors can gain further insights into Amazon's financial health and operational efficiency through various financial data points, including:
- Company Rating API
- Ratios (TTM)
- Full Financials
These resources offer a comprehensive view of Amazon's balance sheet, operational efficiency, and potential margin pressures, which are particularly relevant as the company navigates its European expansion amidst heightened regulatory scrutiny.
Conclusion
As Amazon continues to expand its global grocery footprint, its relationships with suppliers, especially in the UK, remain a significant challenge. With an active regulatory investigation underway and increasing pressure to close the compliance gap, Amazon's ability to balance its growth ambitions with robust governance will be under close observation throughout 2025.