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Nisa makes £10m investment to boost independents

29 March
10:17 2012

Nisa has announced it will inject £10m into price cuts and promotions to ensure that its member retailers remain competitive.

The £10m will be invested across a range of initiatives designed to drive down prices across products, improve member profitability and give greater consumer value. The initiatives will range from price promotions to increased margin lines and beneficial delivery terms.

As well as continued investment in the 18 planned promotional periods throughout the year and a focus on themed activity, there will also be an upweighting of the popular WOW deals, with extra activity planned throughout the coming year, while there will also be significant long-term promotions on major branded products including Coca-Cola, Nescafé, Red Bull and Walkers crisps as well many others, providing retailers with “strong margins and consumer price points”.

These investments in product pricing are further complimented by other initiatives funded by the investment, which includes surcharges being dropped on goods delivered from Nisaway on cages. Members who have the need to take goods on cages have historically been charged an additional 10p per case. Nisa has been able to remove this charge as part of its new distribution contract reducing member costs by an average of 1% on goods delivered on cages.

In addition, the investment sees the company launch further terms improvements, which will see the introduction of over 1,100 products on to full-pallet price discounts. The discounts have been calculated based on warehouse efficiency and will be set at £12 per pallet for pallet quantities of 90 cases and over, £6.50 for pallets of between 60 and 89 cases and £5.00 for pallets of between 45 and 59 cases. Dependent upon product, value and pallet configuration this change will reduce member costs on these goods by 1% to 5%.

John Sharpe, managing director for central distribution, trading and logistics, said: “We’ve introduced a raft of initiatives as part of our £10m investment, which are intended to simplify purchasing and distribution for the member and benefit them directly in the form of increased margins and strong promotions on major branded products.

“We’ve always had excellent promotions and among the lowest prices in the sector, but we wanted to really help our members succeed and push onto the next level.” 

Source: Nisa

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