Buying group Sugro has halted investment in its Nearbuy symbol group and will not be actively recruiting new retailers.
Sugro MD Philip Jenkins told The Grocer the stores were performing well but the fascia operation was not the best use of resources.
“I’m just trying to be realistic,” said Jenkins.
“Have I got to go and employ this massive department to get the fascia rolled out, to refit the stores and take on all the costs attributed to that? Is that really what Sugro does best? Is that a wise investment? The answer to that, at the moment, is probably no.”
Ten Nearbuy stores are currently operating in the South West with Nisa delivering chilled, frozen, grocery and alcohol ranges.
Sugro Retail Club members can still open a Nearbuy fascia but the group will no longer be proactive with new recruitment.
Sugro will continue to focus investment in the wholesale business, retail club and commercial platform.
The group has also struck a deal with suppliers to offer cashback on gap fill orders for independent retailers.
The scheme, Cash Bonanza, will offer three-weekly deals on impulse SKUs with cashback for every case ordered. The rewards are collected in an online piggy bank at cashbonanza.org and retailers can transfer the accumulated cash to their bank account at their time of choice.
Cash Bonanza eliminates the need for manufacturers to send out field sales reps to independent stores and provides a cash incentive for retailers to join the Sugro Retail Club.
“For years we’ve seen suppliers with field sales agents going around with stock in cars selling to independent retailers on the principle of gap fill. This gap fill scheme is a way of looking at range distribution and converting bonuses into cash,” added Jenkins.
No comments yet