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

Amazon remains the lowest-ranked UK food retailer for compliance with the Groceries Supply Code of Practice (GSCOP), with 66.4% of suppliers reporting compliance in 2025, an improvement from 47% in 2024 but still 24.6 percentage points behind the next-worst performer. This persistent underperformance, despite overall industry compliance improving to 93%, comes as the Groceries Code Adjudicator (GCA) has launched an investigation into Amazon over timely supplier payments, signaling continued regulatory scrutiny of its UK grocery operations.

Analysis

Amazon's UK grocery division continues to exhibit significant operational friction, as evidenced by its ranking as the worst food retailer for compliance with the Groceries Supply Code of Practice (GSCOP) for the second consecutive year. Although its supplier-perceived compliance improved to 66.4% in 2025 from 47% in 2024, it remains a stark underperformer, trailing the 13th-place retailer by 24.6 percentage points and falling well short of the 93% industry average. This persistent gap highlights deep-seated issues in its supplier relationships. The situation has escalated beyond poor survey metrics, as the Groceries Code Adjudicator (GCA) has now launched a formal investigation into whether Amazon breached the code regarding timely supplier payments. This regulatory probe, covering a three-year period, signals material legal and reputational risk for Amazon's UK grocery operations, potentially creating a headwind for its expansion efforts in a highly competitive market.

Key Decisions for Investors

• Investors should monitor the outcome of the GCA's investigation into Amazon's supplier payment practices, as any resulting fines or mandated operational changes could directly impact the UK grocery segment's profitability and model.
• While the negative sentiment and regulatory scrutiny are notable, this issue should be contextualized as a localized headwind for a minor division, unlikely to materially impact Amazon's consolidated financial results.
• Consider that this ongoing friction with suppliers could impede Amazon's ability to gain market share from established UK competitors like Tesco and Sainsbury's, who maintain significantly better compliance and stronger supplier networks.