Nisa is resetting its wholesale pricing strategy to create an easier workload for retailers.
In a letter sent to retailers, seen by The Grocer, WSP for top-selling products – also known as ‘front basket’ items – will be now benchmarked against its wholesale competitors every two weeks from 20 July.
This followed feedback from retailers that its current weekly model was generating too much admin in staying on top of more frequent price changes. Retailers will be given seven days’ notice of any upcoming price changes.
‘Back basket’ products that sit across the rest of Nisa’s range, which tend to be items bought less frequently and account for a lower percentage of store sales, will now also be reviewed every three weeks, with 28 days’ notice to be given ahead of price changes.
Nisa added it would no longer adjust prices in cases where a change was 10p per case or less, or when the product sold fewer than 100 cases per week, in order to “limit the number of price changes”. The exception to this is on supplier CPIs, where Nisa “may need to flow these through to retailers”.
The symbol group has also reviewed Co-op own label to ensure “we focus on value where it is most important to shoppers”. Its top 50 products, including back bacon, raspberries and a two-litre-bottle of lemonade, will now be included in the ‘front basket’ range.
It has also “rebalanced the pricing” of some Co-op own-brand products, which were priced incorrectly, resulting in the WSP and rsp of 46 key products being reduced, including Co-op Cornflakes dropping from £1.39 to 85p. The pricing model for all Co-op products remained otherwise unchanged, Nisa added.
Finally, Nisa has reviewed its branded rsp strategy and aligned 4,000 lines to a “market-leading competitor for both convenience and supermarket stores”.
“Today we’re announcing a number of changes to the way we operate our commercial policy and pricing,” the letter said. “These changes will remove some complexity from our pricing model and launch a new rrp strategy aligned to market-leading competitors. All changes will be implemented in a phased approach over six weeks.
“Our prices will be benchmarked against three leading wholesale competitors that have a comparable offer to Nisa. Our current fourth benchmark is a cash & carry operator that we do not believe is a natural competitor and so is being removed from our benchmarks.
“These changes have been made to support you to remain competitive and offer your shoppers great value in this tough market.”
No comments yet