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The City roundup video: Will Tesco really be worried by the adjudicator's probe?

Video: Alex Lawson provides a run-down of the day's major news from the City

Alex Lawson
Thursday 05 February 2015 14:02 GMT
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Tesco’s ‘smart retailers’ mean it cannot be counted out
Tesco’s ‘smart retailers’ mean it cannot be counted out (Getty)

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Don't miss out on the goings on in the business world, with our daily round-up of the biggest news from the City.

So it's finally happened, Tesco's relationship with its suppliers is to face a full-scale investigation by the Groceries Code Adjudicator.

After almost of a decade of wrangling, Christine Tacon gained was named the first adjudicator in 2013 after persistent complaints from suppliers and farmers over the supermarkets’ bully boy tactics.

A Management Today piece this week described the small stool and over-flowing coffee presented to meat suppliers called to its closing HQ in Cheshunt.

However, the City poured scorn on the investigation this morning. Shore Capital analyst Clive Black said the adjudicator's debut supermarket probe felt "like self-justification" for the government body while Mitsubishi Financial Group's William Bushby did not expect there to be a noticeable impact on Tesco. Meanwhile, business secretary Vince Cable called the investigation "historic" as he rushed to justify the small body led by Tacon's existence.

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