Leading convenience retailer Martin McColl has agreed a new contract with Nisa that will see the buying group supply around half of its convenience stores.
The Grocer revealed in March that Martin McColl had been using Nisa for its deliveries at 15 trial stores since January. This week it confirmed a new five-year deal that will see 330 of its 670 c-stores switch supply from Palmer & Harvey to Nisa.
Martin McColl chairman and CEO James Lancaster told The Grocer it had put out a tender for the deal last year, which covers its largest stores, and had chosen Nisa because of its wider range of chilled and fresh food as well as its Heritage own-label range. He said this would enhance its store offering for existing customers and attract new ones.
“As the business continues to grow with the development of convenience as the key part of our strategy, we believe this is the right time to review our supply arrangements and take this step forward.”
The new deal does not however signal an end to the retailer’s relationship with Palmer & Harvey, which will continue to supply the remainder of the retailer’s estate, which also includes around 600 CTNs. It has signed a separate five-year deal to this effect.
Lancaster said the tie-up with Nisa was a significant part of its growth strategy, which includes plans to have 800 c-stores by the end of 2014.
The news comes as a boost to Nisa, after its biggest member Costcutter announced plans to end its more than 20-year relationship with the buying group earlier this year, in favour of the creation of a new venture with Palmer & Harvey.
“We are delighted to welcome Martin McColl as a member of Nisa and very much look forward to developing our service to the stores covered under this agreement,” said Nisa’s head of commercial operations and member service James Roberts.
“It is clear there is synergy between the two businesses, with Nisa’s business model ideally suited to the convenience format store and McColl’s keen to develop this area of its business.”
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