Nisa to invest £2 million in reducing retail and wholesale prices
Nisa Retail has announced a £2 million investment in price, to allow its retailers to remain competitive.
The wholesale price of many Co-op own-brand products, including chicken fillets, baked beans and flour, has already been reduced. This investment will not only support Nisa retailers’ margin on individual product lines but will also increase bottom line POR.
Ken Towle: ‘This significant investment in price will ensure our partners stay competitive across a basket of goods.’
There is also additional investment in branded items, such as Lucozade, KitKat and Cathedral City cheese.
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.”
Nisa measures its competitiveness using a price index across thousands of comparable product lines. Overall, Nisa is consistently cheaper than its major national competitors across a basket of 3,000 branded lines.
Towle commented: “I am pleased to see that 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.”
Trading director Ayaz Alam added: “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%.
