Terms which will give Costcutter retailers up to a 6% rebate on weekly orders have been described by Nisa retailers as “unfair”.
The rebate comes into effect at the same time as Costcutter’s supply deal with Co-op begins on 28 May. In comparison, several Nisa retailers told RN their net rebates amount to 3% on average, dependent on weekly spend, store standards and loyalty. The Costcutter rebate also contains no delivery surcharge, unlike Nisa retailers who are subject to a charge depending on volume.
Sandip Patel, of Nisa Krystals Express in Southfields, said: “It’s not right, because Costcutter retailers are getting the better deal, despite Nisa being owned by Co-op.
“A few of us may have to get together to raise our concerns. However, we need to trust the Co-op will help Nisa retailers over the next few years.”
Ranjeet Chandi, of Nisa Buckden in Cambridgeshire, added: “It’s unfair. Co-op has taken over Nisa, whereas Costcutter only has a supply deal. We all have access to the same range.”
A Nisa spokesman said: “Nisa’s rebate model is volume, product and range-specific. Any basic rebate comparison is flawed. Nisa’s total package offers great value, with leading prices, rebates and customer insights.”
The terms were revealed following official clearance of Co-op’s £143m takeover of Nisa. Speaking about the takeover, Co-op chief executive Jo Whitfield said: “Costcutter is its own business and therefore they’ll set their own prices for their retailers.
“That’s not something we can influence, but we’ll ensure we do a great job for our Nisa partners. There will be offers and product opportunities unavailable to Costcutter retailers.”
Ms Whitfield declined to reveal more, but confirmed Nisa’s Heritage range is being retained alongside price reductions of up to 20% for certain products. Six roadshows will also take place in June to inform retailers of Co-op’s plans.