99p Stores has launched a trial with Nisa that will see the buying group deliver chilled and fresh lines direct to the discounter’s stores.
As part of the trial, Nisa will make three to four deliveries a week to selected stores.
99p Stores said it had seen a 20% year-on-year sales increase on chilled lines and would double the number of chillers in its 230 stores over the next 12 months if the partnership proved a success.
“We want more people to get their lunches from 99p Stores and this expansion will steal market share from supermarkets as we are offering the same branded goods at less greedy prices,” said commercial director Hussein Lalani.
“This partnership is just the start and we are actively looking for new direct suppliers and manufacturers on chilled. We’ve had bits and pieces of branded chilled products in the past but this will be a regular delivery and our volumes will increase dramatically.”
99p Stores has been a Nisa member since 2011.
“We have been delivering chill freeze into 99p Stores’ central distribution warehouse for the past two years,” said Nisa fresh business manager Nick Slater. “However, we recognised the mutual desire to provide direct supply into stores in order to broaden their ranges. This range will focus on fresh and include fmcg such as milk, bread, cakes, fruit and vegetables. We will use the trial to gauge further roll out potential.”
The trial is another coup for Nisa, which in February launched a 15-store direct supply trial with McColl’s Retail Group and in July signed a five-year contract to supply 330 c-stores.
99p Stores plans to open 120 new stores, bringing its total estate to 350, and to create 3,500 new jobs by 2017. However, investment expenses caused EBITDA to fall 18% to £4.9m in the year to January 2013.
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