Woolies, Aldi reassure suppliers

Woolworths and Aldi have vowed to give suppliers more bargaining power following complaints against the supermarket giants' conduct.

Both retailers have sent letters reassuring suppliers that they have the right to negotiate the terms of their grocery supply agreements.

This comes after the competition watchdog received complaints about the way Woolworths and Aldi were presenting agreements which gave the impression the supplier was unable to negotiate the terms of the deal.

The complaints came several months after Coles, Woolworths and Aldi signed a new Food and Grocery Code of Conduct mid-year that was aimed at giving suppliers more bargaining rights.

The Australian Competition and Consumer Commission announced on today that it was pleased with the steps Aldi and Woolworths had taken to clarify the situation.

ACCC chairman Rod Sims said the code provided certainty to suppliers, who are often in a much weaker bargaining position than the major retailers.