Select and Save reviewing Nisa deal due to market uncertainty
Select and Save have announced that they are considering switching wholesale partners away from their current provider Nisa, citing future stability as a key criteria.
Their current contract expired on April 30 but has not been renewed yet. It is understood that the Midlands based symbol group is in talks with Nisa to agree a new contract, but a statement by Select and Save indicates that other wholesalers have expressed interest in taking over the distribution arrangement.
The group’s 65 stores turn over £20m per year and is hoping to reach 200 stores by 2020. Co-founder and MD Kam Sanghera has given himself until the end of June to finalise a new deal.
The statement by Select and Save indicated that price, collaboration on the brand’s expansion and the wholesaler’s ability to compete in a converged market were key factors in any new deal.
A cryptic comment from the group hinted towards the last aspect stating, “Sanghera thinks that the Tesco acquisition of Booker has to be taken seriously, and we have to be ahead of the game, as their will be many more deals such as this to come, it will be interesting to see what happens with P&H."
Select and Save have been partnered with Nisa for 15 years of the retailer’s 18 year trading history.
A further comment from their MD revealed his doubts about Nisa’s future strategy. He explained, “We are grateful for all the support that the Nisa organisation has contributed towards our overall growth. However, with the challenges that Nisa now faces and the uncertainty within the convenience sector at the moment, it is now time to review the arrangement we have in place so that we can continue to offer members the stability and confidence they expect.”
Retail Express approached Nisa for comment and is awaiting their response.
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