MORRISONS has received a slapped wrist from the supermarket watchdog for breaking the Grocery Code by demanding lump sum payments from some suppliers.

But the Groceries Code Adjudicator has stepped back from fining the Bradford-based supermarket due its quick action in tackling the breach.

While lump sum payments are common in the supermarket sector, such as when a supplier wants to improve is sales position in stores, the GCA said the particular case went beyond Morrisons supplier agreements and was against fair dealing principles.

In a case study on its website the GCA reports several cases of Morrisons demanding lump sum payments from suppliers in 2014 and 2015.

After being alerted by the Adjudicator, Morrisons launched an internal investigation, including reviewing 66,000 e-mails, and took disciplinary action where appropriate.

It also immediately introduced extra staff training on negotiation techniques permitted by the Code.

A Morrisons spokesman said an annual survey of suppliers on how well supermarkets comply with the Groceries Code had shown Morrisons in an improved light with 80 per cent satisfied but showing room for improvement.

He said: “This survey shows an improvement in suppliers’ perception of how well we comply with the Groceries Code. We have good relationships with our suppliers and we continue to improve by simplifying and updating our buying practices and providing regular training for our buyers.”

Meanwhile, the latest grocery market figures from Kantar Worldpanel for the 12 weeks to June 19 show that Morrisons sales fell by another 2.4 per cent due to the continued impact of store disposals.