The new Canadian code of conduct for grocers, the final version of which should be determined in the coming weeks, should help improve the relationship between suppliers and grocers, believes Metro President and CEO Eric La Flèche.
The big boss of Metro recognizes that relations with certain suppliers have experienced moments of tension. “Not everyone, in general, relations are good,” he nuanced in a press scrum on Thursday, on the sidelines of a speech to the Canadian Club of Montreal.
Metro and other industry members have worked to develop a voluntary code of conduct. A proposal for a final version is currently undergoing a consultation process, until May 30. The document includes a dispute resolution process. While it does not provide for the imposition of fines, a number of potential disincentives to encourage compliance, such as communicating “bad behavior” to the public, are provided.
Problems that last
The industry-led code of conduct for grocery stores has been proposed as a way to address long-standing issues such as arbitrary fees, cost increases imposed without notice, and late payments. “I think what’s in there will be beneficial for having more transparency, and then things will be clearer between the different players,” says Mr. La Flèche.
By offering guidelines, the code will provide a guide to conduct that will help reduce “unpleasant surprises” and “one-sided decisions,” according to the leader. He gives an example of undelivered orders as a situation that would be clarified by the code. “When we place an order that isn’t filled, then we can’t deliver to the store and we frustrate our customers because we don’t have the product, what happens? Can we charge a penalty? If so, under what circumstances? Then it will be clearer for everyone. »
“Nobody wants to be imposed unilateral increases for nothing, without justification,” he adds. [Les fournisseurs] don’t want fees imposed on them unilaterally without justification, either. So it’s negotiation that will be transparent. I think it should work. »
During the 2022 financial year, Metro had recorded nearly 27,000 requests for price increases of more than 10% on average from its suppliers only for dry foods, the leader reported last January. Since then, he says he sees signs of moderation. “The quantity of requests is falling, the rate of increase in demand has also fallen, he specifies in a press scrum. There are still some, but it’s definitely a sign of slowing increases. »
Nobody wants to be imposed unilateral increases for nothing, without justification