Co-op invests £800k in lowering own-label wholesale prices

The Co-op is investing £800,000 in lower prices of key own-brand lines for its wholesale customers.

The move is the first major strategic development since the society rebranded its Nisa business as Co-op Wholesale last month.

Co-op said it was also doubling the number of own-brand lines that it included as part of its key range, which features lower prices for its wholesale customers. The range has been developed using sales data to “identify the most important products for independent retailers”.

Co-op said it had reduced the wholesale price of its key own brand range by an average of 3%. Some lines have been reduced by up to 18.5% such as Co-op mixed peppers, which have come down in price by £1.65. It has also taken £2.99 off Co-op Milk Chocolate Malted Biscuits and 48p off the wsp of Co-op’s 12 Large British Free-Range Eggs. There have also been reductions in the beers, wines and spirits category, with £3.60 deducted off the wsp of Co-op DST Imperial Vodka 37.5% one-litre.

“We understand the pressures that independent retailers face, and that value is still of high importance, and that’s why we remain committed to providing them with the best possible wholesale prices, so they can grow their businesses sustainably,” said Co-op Wholesale MD Katie Secretan.

“This investment is a significant step in helping retailers offer Co-op’s high-quality own-brand products at prices that allow them to remain competitive and meet customer demand.”

As part of its annual results published last week, Co-op said its wholesale revenue for the year to 4 January fell 5.5% to £1.4bn, while it made a loss of £1m compared with a £14m profit the previous year. Co-op MD for B2B and growth Jerome Saint-Marc said the sales fall was linked to its previous investment into pricing for its retail partners.

“Last year, we focused on starting to lay the foundation for future growth opportunities across the division, while the conditions in the wholesale market have been challenging we have continued to proactively support partners with significant price investments,” he said.

“Pleasingly, despite the tough markets where the broader sector saw a decline in volume of 6.7% across symbols and independents, we held Nisa market share at 11.9%. We also continue to see high level of partners buying into our own brand at 92%.”