FMP
Jun 25, 2025 8:58 AM - Parth Sanghvi
Image credit: James Yarema
Amazon (NASDAQ:AMZN) has once again ranked last among UK grocery retailers in terms of compliance with the Groceries Supply Code of Practice (GSCOP), according to the 2025 survey by the Groceries Code Adjudicator (GCA).
While the e-commerce giant showed some year-over-year improvement—66.4% of suppliers said Amazon “consistently” or “mostly” complied with the Code, up from 47% in 2024—the company still trailed far behind competitors like Lidl (91.1%).
The GSCOP aims to ensure that major retailers treat suppliers fairly—especially when it comes to payment timelines, dispute resolution, and contractual terms. Amazon became subject to the code in 2022 when it expanded its grocery operations through Amazon Fresh and its online marketplace in the UK.
The results are particularly significant in light of the GCA's ongoing investigation into Amazon's supplier payment practices over the last three years.
An Amazon spokesperson stated that the company has been working to improve supplier relationships, pointing to changes in dispute resolution, payment practices, and dedicated account management.
“We know from listening to our grocery suppliers that these changes… are making a positive difference,” the spokesperson said, while also acknowledging “much more to do.”
Despite this, the perception gap between Amazon and its peers remains stark—a nearly 25 percentage point difference from the next-lowest performer, Lidl.
While supplier sentiment is not directly linked to financial performance, it can signal potential reputational risk, regulatory exposure, and supply chain friction—factors investors often monitor closely.
You can track Amazon's financial strength and performance via:
These provide insights into Amazon's balance sheet health, operational efficiency, and margin pressures—relevant as it juggles its expansion in Europe with stricter regulatory scrutiny.
Even as Amazon expands its physical footprint in global grocery markets, its supplier relationships remain a pain point—especially in the UK. With an active probe now underway and mounting pressure to close the compliance gap, Amazon's ability to balance growth and governance will remain under a close lens in 2025.
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