LONDON: Britain’s grocery industry watchdog has opened an investigation into Tesco’s relations with its suppliers, dealing a further blow to the battered reputation of the country’s biggest supermarket.
The Groceries Code Adjudicator (GCA) Christine Tacon said she had formed “a reasonable suspicion” that Tesco had breached the industry’s code of practice and there was evidence the breaches “were not isolated incidents, each involving a number of suppliers and significant sums of money.”
The GCA is being given powers to fine supermarkets but these will not be in force in time to affect the Tesco investigation.
Any sanctions on Tesco would be limited to legally binding recommendations regarding its future behavior or “name and shame” measures, such as forcing it to publish apologies in British media.
The probe, the first since the watchdog was established in 2013, comes on top of those by Britain’s Serious Fraud Office and the Financial Reporting Council in the wake of Tesco’s 263 million pounds ($400 million) profit over-statement last year.
Legislation to give the GCA powers to fine supermarkets up to one percent of their annual UK turnover is currently before lawmakers and the government expects its proposals to become law before the general election in May.
However, these proposed financial penalties will not be retrospective and so will not apply to the GCA’s probe of Tesco which covers the period from June 2013 until this month.
NEW CEO MAKING CHANGES
Tacon’s probe, expected to last up to nine months, will examine the existence and extent of practices at Tesco which resulted in delayed payments to suppliers. Her inquiry will also look into payments made by suppliers to secure more prominent places on shelves for goods not on promotion.
Dave Lewis, who became Tesco CEO last September, has announced plans to cut costs and sell assets to tackle the crisis he inherited at Britain’s biggest retailer.
Under Lewis, Tesco has acted to strengthen compliance and is changing the way it works with suppliers.
Having discussed the practices with Tesco, Tacon now needs more information from suppliers to determine what further action to take. She called for evidence to be submitted by April 3.
“We will continue to cooperate fully with the GCA as she carries out her investigation and welcome the opportunity for our suppliers to provide direct feedback,” Tesco said.
“The GCA probe ... feels very much like self-justification by an organization that has talked much but not actually done anything of note in practical terms,” said Shore Capital analyst Clive Black.
Grocery watchdog to probe Tesco’s supplier practices
Grocery watchdog to probe Tesco’s supplier practices
New Murabba seeks contractors for Mukaab Towers fit-outs: MEED
RIYADH: Saudi Arabia’s New Murabba Development Co., a wholly owned subsidiary of the Public Investment Fund, has issued a request for information to gauge the market for modular and offsite fit-out solutions for its flagship Mukaab development, MEED reported on Wednesday.
The RFI was released on Jan. 26, with submissions due by Feb. 11. NMDC has also scheduled a market engagement meeting during the first week of February to discuss potential solutions with prospective contractors.
Sources close to the project told MEED that NMDC is “seeking experienced suppliers and contractors to advise on the feasibility, constraints, and execution strategy for using non-load-bearing modular systems for the four corner towers framing the Mukaab structure.” The feedback gathered from these discussions will be incorporated into later design and procurement decisions.
The four towers — two residential (North and South) and two mixed-use (East and West) — are integral to the Mukaab’s architectural layout. Each tower is expected to rise approximately 375 meters and span over 80 stories. Key modular elements under consideration include bathroom pods, kitchen pods, dressing room modules, panelized steel partition systems, and other offsite-manufactured fit-out solutions.
Early works on the Mukaab were completed last year, with NMDC preparing to award the estimated $1 billion contract for the main raft works. This was highlighted in a presentation by NMDC’s chief project delivery officer on Sept. 9, 2025, during the Future Projects Forum in Riyadh.
Earlier this month, US-based Parsons Corp. was awarded a contract by NMDC to provide design and construction technical support. Parsons will act as the lead design consultant for infrastructure, delivering services covering public buildings, infrastructure, landscaping, and the public realm at New Murabba. The firm will also support the development of the project’s downtown experience, which spans 14 million sq. meters of residential, workplace, and entertainment space.
The Parsons contract follows NMDC’s October 2025 agreements with three other US-based engineering firms for design work across the development. New York-headquartered Kohn Pedersen Fox was appointed to lead early design for the first residential community, while Aecom and Jacobs were selected as lead design consultants for the Mukaab district.
In August 2025, NMDC signed a memorandum of understanding with Falcons Creative Group, another US-based firm, to develop the creative vision and immersive experiences for the Mukaab project. Meanwhile, Beijing-based China Harbour Engineering Co. completed the excavation works for the Mukaab, and UAE-headquartered HSSG Foundation Contracting executed the foundation works.
