Retail in Asia

In Shops

Supermarkets in Australia face life-changing decision on code of conduct

Today will be crunch time in the politically charged negotiations between the supermarket giants and the Australian Food and Grocery Council (AFGC) to agree to a supermarket code of conduct that is voluntary rather than mandatory.

After months of discussions, Woolworths is scheduled to hold its final meeting with the AFGC on Monday to once and for all try to reach an agreement on a code designed to improve relationships between supermarkets and suppliers by curbing the power of the supermarket giants.

An agreement was expected by Easter and with less than five weeks of sitting left in Parliament, the speculation is that an agreement must be reached in the next two or three weeks – or a mandatory code could be imposed on them. If neither is done, the fate of the retail giants will be left to the government elected in September.