Tesco boss invites anonymous complaints to help retailer change its own behaviour

Aggrieved Tesco suppliers will in future be able to complain anonymously to the retailer about poor treatment. In a move designed to appease critics, boss Sir Terry Leahy said the scheme would operate in a similar way to Tesco's Viewpoint procedure for employees.

"I hope this will prove an important process to help us change our behaviour," Leahy told an IGD conference comprising mainly food and drink manufacturers.

Clearly sensitive to recent heavy private criticism, he said: "There are obvious tensions and trade-offs. It's a tough market and we don't always get it right, but we do need strong, successful suppliers and long-term relationships are essential. The key to a good relationship is trust and there is more we can do to build that."

But he defended the retailers' price squeezing policy, saying Tesco was successful because it was good at identifying what consumers wanted ? not least, low prices.

"We hold a mirror up to society. Our actions have consequences. But we shouldn't blame the mirror if we don't like what we see in it."

Leahy's olive branch to the industry will be welcome news to the National Farmers' Union (NFU), which is developing a buyers' charter of good business practice with the British Retail Consortium and the Food & Drink Federation, among others.

The NFU president Tim Bennett said: "All too often decisions are made at junior level for short-term gain."