Nisa members 'wait and see' over Sainsbury's takeover deal, reveals Grocer poll

Nisa members appear open to the proposed £130m takeover by Sainsbury’s, though in the absence of a formal bid many remain undecided as to whether they will support it or not, according to a poll (below) of 100 Nisa retailers carried out for The Grocer.

The survey, conducted by Him, found more Nisa retailers (30%) were in favour of a sale than dead set against it (25%). However, the majority (45%) said they were unsure what to make of the situation.

The survey also found that 30% of Nisa retailers expected a sale to Sainsbury’s to go through, compared with 20% who don’t expect the deal to be done. Half were unsure as to how the dice will fall.

The Grocer understands that Sainsbury’s, which is currently in a period of exclusivity while it reviews Nisa’s books, has until early August to decide if it wants to make a formal offer.

If at that stage the Nisa board wishes to proceed, it will have to put it to a vote of the members. It is thought that 75% of the vote would be needed for it to go through. There are currently about 1,400 members - but it will not be a one member, one vote deal. Members each have varying numbers of shares, up to a maximum of 250. There are about 35 members who have the maximum shareholding.

In an increasingly competitive grocery market and with Tesco’s proposed £3.7bn takeover of Booker casting a huge shadow over the convenience sector, the ability to compete more effectively in terms of pricing was by far the biggest factor cited by Nisa retailers as the reason to agree to a sale of the business.

Half of those polled said the ability to compete better would be key, 28% said remaining independent was most important, while just 22% would be most swayed by the prospect of a good price for their shares.

Asked what they would do in the event of Nisa being sold to Sainsbury’s, 28% said they hoped to continue trading as an independent while using the supermarket group as their main supplier, while 17% were looking forward to becoming a Sainsbury’s franchisee.

However, for 14% of Nisa retailers, rather than working with Sainsbury’s, they would switch wholesalers to maintain their independence. None of the retailers said they would retire, but 41% were unsure of their future if a deal went through.

The large number of undecideds should alert the Nisa board that while there is a lot to play for, should it recommend the offer, it will have to present a very clear case to convince members. One leading Nisa member summed up the concerns many were facing.

“We are very precious about the business we have built up over many years and are very precious about Nisa,” he said. “There must be a compelling argument to make us change that. Sainsbury’s will have to be clear about what’s on offer, now and in the future for us as individual businesses.”

A Nisa spokesman said: “We have held six well attended regional meetings across the country, and the overwhelming sentiment of Nisa’s members is their firm wish to be able to evaluate an offer for their business, should one be forthcoming.”