Nisa-Today's record £4.5m surplus to members to encourage loyalty is starting to pay off, with the buying group this week signing a new long-term contract with North East Convenience Stores.
The five-year deal with the 11-store chain, which has been a Nisa member since it was established in 2000, is worth £30m to Nisa-Today's. Accounts filed at Companies House show the retailer made pre-tax profits of £153,944 in the year to 30 November 2009, up 0.1%. Sales were up 25.3% to £11.2m.
"After a strategic review of our business and future expansion plans, we feel Nisa is the right partner to help us achieve our goals," said director Naveen Vadhera. "We are delighted to commit our future to the Nisa group and look forward to an exciting and profitable period of growth for both companies."
Nisa group sales director Andrew Mouse added: "NECS is a very successful and professionally-run operation and we are delighted to confirm its membership to Nisa for a further five years. We have a healthy relationship with the business, which we have enjoyed for a number of years, and I believe this move is important for both businesses' development."
The deal is a major boost to Nisa-Today's, which three months ago made the biggest payout to members in its 32-year history in a bid to stop defections to rival operators.
Last month Colin Graves, the chairman of Nisa's biggest member, Costcutter, claimed Nisa-Today's had tried to poach Costcutter retailers for the Nisa fascia. Nisa-Today's chief executive Neil Turton hit back by claiming that Costcutter had in turn approached Nisa members.
Meanwhile, Costcutter's owner, Bibby Line Group, has secured its third acquisition of the year. Its distribution arm has snapped up TM Logistics, which works in the fmcg, automotive and construction markets.
"Acquisitions are a key part of our growth strategy," said Bibby Distribution chief executive Iain Speak.
"We remain active in looking for opportunities."
The five-year deal with the 11-store chain, which has been a Nisa member since it was established in 2000, is worth £30m to Nisa-Today's. Accounts filed at Companies House show the retailer made pre-tax profits of £153,944 in the year to 30 November 2009, up 0.1%. Sales were up 25.3% to £11.2m.
"After a strategic review of our business and future expansion plans, we feel Nisa is the right partner to help us achieve our goals," said director Naveen Vadhera. "We are delighted to commit our future to the Nisa group and look forward to an exciting and profitable period of growth for both companies."
Nisa group sales director Andrew Mouse added: "NECS is a very successful and professionally-run operation and we are delighted to confirm its membership to Nisa for a further five years. We have a healthy relationship with the business, which we have enjoyed for a number of years, and I believe this move is important for both businesses' development."
The deal is a major boost to Nisa-Today's, which three months ago made the biggest payout to members in its 32-year history in a bid to stop defections to rival operators.
Last month Colin Graves, the chairman of Nisa's biggest member, Costcutter, claimed Nisa-Today's had tried to poach Costcutter retailers for the Nisa fascia. Nisa-Today's chief executive Neil Turton hit back by claiming that Costcutter had in turn approached Nisa members.
Meanwhile, Costcutter's owner, Bibby Line Group, has secured its third acquisition of the year. Its distribution arm has snapped up TM Logistics, which works in the fmcg, automotive and construction markets.
"Acquisitions are a key part of our growth strategy," said Bibby Distribution chief executive Iain Speak.
"We remain active in looking for opportunities."
No comments yet