Nisa revamps rewards model

From next year, the rate of rebate will be determined solely on how much retailers spend in a week

Nisa is to simplify its rewards model from January, with rebates determined by a simpler spend-based model. 

The change will see the existing tier-based system removed, which has the Flex, Grow and Thrive levels. Each tier is currently based on how much Co-op own-label retailers stock, with the rate of reward determined by the level. 

Instead, from 1 January, the rate of rebate will be determined solely on how much retailers spend in a week. 

In a letter to stores about the changes, seen by Better Retailing, the wholesaler said: “The Fresh Rewards rebate model was built on simplicity and fairness, making it easy for you to earn higher rebates, allowing you to drive your business forward. 

“With value more important than ever, Co-op own-brand products continue to be a strong proposition for Nisa, with more than 90% of retailers stocking the products. Sales (excluding tobacco) account for more than 20% of Nisa total sales, and sales of Honest Value products have increased by 30%, as the cost-of-living crisis has caused a shift in consumer behaviour. 

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“We’ve committed to make our rebate scheme simpler and you’ve told us that the addition of Co-op Credible is adding complexity, which is why from Q1 we’re removing this as a criteria, and are moving to a more focused spend-based rebate scheme. 

“All customers will still need to place a weekly ambient order to qualify, and from Q1 the required minimum chill and freeze order value will change to £900 per week. The support for the two mandatory allocation schemes will remain unchanged.” 

To achieve a 1% rebate, the average weekly spend requirement is £5,000. For a 2% rebate, the threshold is £7,500. For a 3% rebate, a retailer must spend £10,000, while 4% rebate requires a £12,500 spend. A retailer must spend £15,000 a week to qualify for a 5% rebate. There’s an extra 0.5% for those retailers who have a Nisa fascia. 

Although the upcoming changes represent a simpler model, the spend requirements for each rebate represent a £1,000 increase to qualify for the lowest tier. The £900 chill and freeze requirement also represents a £100 increase. 

The changes were met with a mixed response from affected retailers. One store owner, who asked not to be named, said: “On the face of it, the changes are a good thing.” Meanwhile, others criticised the wholesaler for “moving the goal posts” in relation to the threshold increases. 

Nisa’s changes to the Fresh Rewards scheme have been in development over the course of this year, through a trial with selected retailers. 

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