Amazon again worst performer in UK grocery suppliers' survey, regulator says

Amazon has again been identified as the worst performer in the UK grocery suppliers' survey regarding compliance with the Groceries Supply Code of Practice (GSCOP), with only 66.4% of suppliers believing it consistently complies, despite an improvement from 47% in the prior year. This places Amazon significantly behind other retailers, including 13th-place Lidl at 91.1%. The Groceries Code Adjudicator (GCA) recently initiated an investigation into Amazon over potential breaches related to timely supplier payments, highlighting ongoing regulatory scrutiny of its practices within the UK grocery sector.

Analysis

Amazon has been ranked as the worst-performing food retailer in the UK's 2025 grocery supplier survey for the second consecutive year, signaling persistent operational challenges in its UK grocery division. Although its supplier compliance perception improved to 66.4% from 47% in the prior year, it remains a significant outlier, trailing the 13th-place retailer, Lidl, by a substantial 24.6 percentage points. The broader industry context shows improving standards, with average compliance rising to 93%, which further accentuates Amazon's underperformance. This poor survey result is compounded by a new formal investigation launched by the Groceries Code Adjudicator (GCA) into whether Amazon breached the code on timely supplier payments. While Amazon's management has acknowledged the need for further improvement, the combination of a rock-bottom ranking and a formal regulatory probe presents a material reputational and legal headwind for its UK grocery operations, even if its financial impact on the global parent company is minimal.

Key Decisions for Investors

• Investors in Amazon (AMZN) should closely monitor the outcome of the GCA's investigation, as any resulting fines or mandated changes to payment practices could directly impact the profitability and operational model of its UK grocery segment.
• The persistent negative supplier sentiment and regulatory scrutiny in the UK suggest potential barriers to Amazon's market share growth in this sector, a factor to consider when evaluating the long-term potential of its international retail expansion.
• For investors analyzing the UK grocery market, Amazon's struggles with supplier relations could represent a sustained competitive advantage for incumbents like Tesco (TSCO.L) and Sainsbury's (SBRY.L), who demonstrate stronger compliance and may benefit from more stable supplier partnerships.