Two of the biggest players in the independent sector confirmed they believe it can take on the major multiples as they signed a new 10 year deal this week.
Costcutter and Nisa-Today’s agreed to extend their relationship, which has already lasted 17 years, and has seen Nisa-Today’s provide distribution for the retailer.
At the signing, Nisa-Today’s founder and executive chairman Dudley Ramsden said the deal would include Nisa-Today’s Premier Service, the six-day-a-week delivery service offering Costcutter retailers 3,000 chilled and frozen products.
Nisa-Today’s is due to complete nationwide coverage
with the service when it opens a second temperature controlled depot in Harlow, Essex, to augment the coverage already achieved from its site at Stoke-on-Trent.
He also revealed Nisa-Today’s was building a state-of-the-art 700,000 sq ft ambient warehouse which will open in Scunthorpe in autumn 2005.
Ramsden said: “This warehouse will put us on a par with the multiples. The major multiples are recognised as having the best supply chain in Europe and we have been quite happy to copy them.”
He said the new warehouse would be the optimum size, big enough to take trunker deliveries, but not so large that its running costs became prohibitive.
Ramsden said the power of the major multiples meant they could dictate prices to many suppliers, but he said the scale of Nisa-Today’s operation meant that it could still get close to them on price.
Ramsden also called on the competition authorities to rethink their definition of the grocery sector. He said their insistence on viewing the one-stop and convenience markets as separate was “ridiculous” and gave the major multiples an unfair advantage.
Costcutter founder and chairman Colin Graves revealed that Costcutter had just completed its best year ever, with sales up by 10% to £459m and total membership climbing to a record 1,324 stores.
He said: “I believe there is huge potential in the independent sector.
“Our successful year is evidence of this. Over the past six months Costcutter and Nisa-Today’s have proved they can not only survive but also operate successfully in the wake of multiple pressure in the convenience arena.”
John Wood
Costcutter and Nisa-Today’s agreed to extend their relationship, which has already lasted 17 years, and has seen Nisa-Today’s provide distribution for the retailer.
At the signing, Nisa-Today’s founder and executive chairman Dudley Ramsden said the deal would include Nisa-Today’s Premier Service, the six-day-a-week delivery service offering Costcutter retailers 3,000 chilled and frozen products.
Nisa-Today’s is due to complete nationwide coverage
with the service when it opens a second temperature controlled depot in Harlow, Essex, to augment the coverage already achieved from its site at Stoke-on-Trent.
He also revealed Nisa-Today’s was building a state-of-the-art 700,000 sq ft ambient warehouse which will open in Scunthorpe in autumn 2005.
Ramsden said: “This warehouse will put us on a par with the multiples. The major multiples are recognised as having the best supply chain in Europe and we have been quite happy to copy them.”
He said the new warehouse would be the optimum size, big enough to take trunker deliveries, but not so large that its running costs became prohibitive.
Ramsden said the power of the major multiples meant they could dictate prices to many suppliers, but he said the scale of Nisa-Today’s operation meant that it could still get close to them on price.
Ramsden also called on the competition authorities to rethink their definition of the grocery sector. He said their insistence on viewing the one-stop and convenience markets as separate was “ridiculous” and gave the major multiples an unfair advantage.
Costcutter founder and chairman Colin Graves revealed that Costcutter had just completed its best year ever, with sales up by 10% to £459m and total membership climbing to a record 1,324 stores.
He said: “I believe there is huge potential in the independent sector.
“Our successful year is evidence of this. Over the past six months Costcutter and Nisa-Today’s have proved they can not only survive but also operate successfully in the wake of multiple pressure in the convenience arena.”
John Wood
No comments yet