Somerfield has shocked the trade, and many of its own staff, by forging an alliance with the major opponent of the supermarket industry Nisa-Today's.
After challenges from The Grocer, the two companies put out a low-key joint statement admitting that on January 1 Somerfield joined the buying group "for the management, administration and collection of retrospective discounts".
Both parties said no more could be revealed about the deal because Somerfield was in its closed period prior to the announcement of its interim results on January 16. But the deal is believed to have been driven by chairman John von Spreckelsen, who was a member of Nisa while chief executive of Budgens.
Staff were shaken by the announcement, although a spokeswoman for Somerfield emphasised that the deal was purely for money collection and that the buying function would remain in house at Somerfield's Bristol headquarters.
Staff members had been unsettled because of the delay in finding a replacement for buying director Ed Connelly who left in August. This week his replacement was confirmed as Keith Jackson.
Suppliers were also shocked. One said it was as if Tesco had joined Spar. Some suggested the tie up could lead to closer co-operation.
However, a Nisa insider said the deal was "a different type of membership for over rider negotiations only" and described it as a "one off".
He said the extra volume would bring benefits for all Nisa-Today's members, but the move suggested Somerfield was facing problems in securing the best terms for itself. He said the chances of Somerfield becoming a fully fledged member were remote as it would require the agreement of the Nisa board. This comprises the bosses of its retail members, for many of whom Somerfield is a direct competitor.
A number of medium size retailers and groups are members of Nisa's Central Buying Consortium including Londis, Costcutter, Aberness and Budgens. All would be dwarfed by Somerfield's annual sales of £5.9bn.
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