This week, the two companies announced a five-year supply agreement, which will see Red Orange leaving Nisa-Today's after 25 years as a member.
Announcing the deal, Red Orange MD Chris Futter and Costcutter MD Nick Ivel blasted Nisa-Today's for competing against its own members with its flourishing symbol fascia, which was last week awarded Best Symbol Retailer at the Him! Convenience Tracking Programme Awards.
"We have been a member of Nisa-Today's for 25 years and it was clear that to develop our business further, we had to make a strategic change for our members," said Futter.
Ivel added: "It is an unacceptable situation with Nisa at the moment as they continue to develop their symbol group to compete directly with their non-symbol members who are shareholders in the business."
Red Orange has 36 stores in Merseyside, East Anglia, the south and the Midlands. It represents less than 1% of Nisa-Today's business. Ironically,although the supply agreement has been reachedbetween Costcutter and Red Orange, the latter will in fact continue to be supplied by Nisa-Today's. The only change is that Red Orange's goods will be ordered through Costcutter.
Nisa-Today's CEO Neil Turton said he was disappointed by the comments. He said that Nisa-Today's offered fair and transparent terms and that retailers should be allowed choice when it came to symbol fascias.