Nisa invests £2m in price reductions to drive growth for partners
- Reduction in price on own brand and branded items
- Significant price investment allows partners to remain competitive, supporting profit on return and sales margins
- Nisa remains cheaper than key competitors across 3000 branded lines
Nisa Retail Limited, the delivered wholesale and independent retail specialist, has today announced a £2 million investment in price, to allow partners to remain competitive.
The significant investment will see many items reduced in price on branded as well as Co-op own brand products, which have been dropped as part of its Fresh Thinking proposition to help partners meet changing shopper habits.
This investment has reduced the wholesale price of many Co-op Own brand products, including Chicken Fillets, Baked Beans and Flour, and is available to partners now. The award- winning Co-op own brand range is a significant footfall driver, enabling partners a route to new customers and bigger basket spend. This investment in own brand will not only support partner margin on individual product lines but will increase bottom line POR. Additional investment spend on branded items from the front basket including Lucozade, KitKat and Cathedral City Cheese will enable partners to stay competitive in an evolving market.
Ken Towle, CEO of Nisa Retail, said: “We are always looking for ways to ensure our partners can adapt and grow in a fast-evolving market; this significant investment in price will ensure our partners stay competitive across a basket of goods, helping to drive sales and margin in key categories. I am also pleased to see Nisa remains cheapest across thousands of branded product lines compared with our competitors. We continually work hard to secure the best terms we can for our partners with the might of Co-op’s buying power behind us, and this significant investment is just one of a number of ways we are helping partners grow their businesses in 2021.”
Nisa measures its competitiveness using a price index across thousands of comparable product lines. Overall, Nisa is consistently cheaper than its major national competitor across a basket of 3000 branded lines and with industry leading levels of availability, those prices are available to every Partner on every order.
We continually work hard to secure the best terms we can for our partners with the might of Co-op’s buying power behind us.
Ayaz Alam, Trading Director at Nisa Retail, said: “Co-op own brand significantly increases a partners profit on return, and this additional £2m will support our partners in a market where own brand is the coveted prize. Alongside our investment in price reductions, significant promotional activity and new product development planned for this year will enable our partners to stay competitive and adapt to changing consumer trends as we slowly emerge from lockdown.”
Nisa data shows the growing importance of Co-op Own brand on the optimal category mix and a partner’s profit on return (POR); in a sample of 1000 supplied Nisa stores, the impact of own brand sales of c.20% has been shown to increase partner POR by 5.3% on average, while a category sales mix that includes more than 30% fresh and frozen products (compared with only 14% in traditional convenience stores) saw a POR increase of 7.1%.
In addition, the Co-op newly launched ethical hot drinks brand, Ever Ground is now available to Nisa Partners. The Ever Ground brand offers all 100% Fairtrade products including Fairtrade coffee, Fairtrade hot chocolate, Fairtrade sugar and the iconic Fairtrade Co-op99 tea, along with fresh British milk, at a great price. Underpinned by the ethical and sustainable credentials of Co-op, Ever Ground will have its own look and feel.