The number of own-brand suppliers and potential suppliers delisted or not approved on ethical grounds by electricals giant Dixons rocketed by almost 85% last year.
The shift reflects the evolution of Dixons’ compliance processes, including improved auditing, a spokesman said.
Dixons revealed in its annual report that 72 suppliers fell into the category last year compared with 39 the previous year.
No own-brand suppliers audited merited a green rating, which would indicate that a supplier meets or exceeds all standards applied in the traffic light system used by the retailer.
While the number rated amber fell from 148 to 136, those graded red – indicating that a suppler “fails significantly to meet” the retailer’s ethical sourcing policy standards – increased from 51 to 75.
Dixons reported: “Under the renewal and transformation plan, we have redefined our own-brand product range.
“In order to ensure value and choice, this year we have significantly increased the number of suppliers we interact with.
“This has presented us with the challenge of an increase in the number of audits we undertake and the consequences of this increase are reflected… particularly with the number of suppliers classed as red.
“We have worked with these factories to improve their working practices. Where this is not possible they have not been approved or have been delisted as appropriate.”
The retailer conducted 211 factory audits last year compared to 205 the year before.
Dixons annual report also showed that chief executive John Browett’s rewards package shrank last year after profits growth stalled.
Browett’s total remuneration was just over £1m in the 52 weeks to April 30, compared with almost £1.6m the previous year.
Electricals retailers have been among the worst affected by the consumer downturn. Dixons’ rival Comet plunged into loss in its last year. Although Dixons issued a profit warning during the year, it held profits flat at £85.3m.
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