Nisa has had to make “essential” changes to its services and terms and conditions that it hopes will deliver “vital” cost savings and ensure the retail buying group remains profitable after a disappointing Christmas.
An email sent to members this week by FD Simon Webster began with the warning: “Nisa is facing some tough decisions.” It then revealed it was launching a three point plan to “deliver vital cost savings and longer-term operational efficiencies.”
It is removing its ambient time window from 9 February so deliveries will instead be made in one of four time bands; increasing its no order and low order levy from £20/£40 to £100; and reducing its HQ costs by a further £3m this year.
It will also review its terms and conditions to make them easier to adhere to. Ahead of this review, it told members it would now be monitoring the distribution of promotional leaflets; reminded symbol members they were not allowed to stock own-label from rivals; and asked members to ensure they provided complete EPoS data.
Nisa explained in the email the changes followed a year in which it had lost £200m in turnover, but had “replaced most of this figure,” but a “challenging” Christmas period had “compounded” the lost volume.
“As part of the Nisa family we share the good times and the bad and at this moment our situation is not ideal, resulting in unpopular choices,” the email stated.
“It is important we retain the support of our financial stakeholders including credit insurers, which while supportive of Nisa are reviewing the sector. The changes are essential to the continued profitability of Nisa.”
Chairman Christopher Baker said the changes would fund new technology that would save members time and money.
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