Nisa promotional cycle change blamed for waste issues
Company’s promotional dates changed to match Co-op’s cr‘Issue is on short-shelf-life products’
Nisa retailers have experienced issues with wastage and availability since the symbol group’s promotional cycle changed ordering dates to match Co-op’s.
The changes for all Nisa retailers, which the symbol group says has performed strongly, were made at the end of May, with the most recent promotional cycle ending on 17 September. During the latest cycle, retailers have until 13 September to order stock.
Rav Garcha, of Nisa Hockley in Birmingham, said problems with losses occur at the end of the cycle. “The issue is on lines with a shelf life of one or two days,” he said.
“Whatever stock you order before the 13 September is all you’ve got until the 17 September. That stock has to be honoured at the promotional price, but we don’t get a promotional discount and it makes a difference on overall margin.
“The argument would be to buy more stock to be delivered on the Saturday, but you don’t want to risk ordering more just to sit on it.”
Onkar Sandhu, of Nisa Sandhu Stores in Tamworth, added: “Those who take deliveries three days a week are going to make a loss. Bread comes with a short shelf life and, if you buy it in before the Friday, you’re going to be without it until Tuesday.
“You’ve got to forecast enough to last out the promotional cycle or risk running short.”
Garcha advised ret-ailers to forecast and examine their sales data more closely to reduce any issues.
A Nisa spokesperson said: “The initiative went live in late May and sales performance has been very strong since, with the new promotional calendar bringing significant partner benefits.
“We are committed to providing the best possible service to our partners and give all feedback our utmost attention.”
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