Every day low pricing, the mantra of the UK’s biggest grocery retailers, is to come to the independent sector with the launch of a trailblazing EDLP offer by Nisa-Today’s.
The independent buying group is to include an EDLP section in a new consumer leaflet offered to retail members. The Extra option is targeted at larger members and will also carry a non-food element, such as small electricals.
The move is part of a revamp of the consumer offer, with three new promotional leaflets expected to go live in May.
“We distribute 4.1 million leaflets door-to-door every three weeks. This has worked well but we are now refining it, having spoken to members to understand their needs and surveying them to see which options they would like to shop into,” said John Sharpe, managing director of Nisa-Today’s Central Distribution Service. “The reshaped package includes an Extra option which will rotate through products that have a 52-week-a-year low price. We will also offer accompanying point of sale material,” he said.
Sharpe added that many Nisa members were convenience grocers, with the largest stores at 50,000 sq ft and many between 15,000-30,000 sq ft.
“These are trying to attract the full customer shopping basket, not just a top-up,” said Sharpe.
The concept of EDLP is a novel one in the independent sector, which traditionally charges prices up to 15% higher than the major food multiples as a result of less favourable buying terms and the ever increasing costs of running businesses.
But price has become a more critical issue as the big box retailers aggressively move into convenience. These stores typically only charge up to 5% more than in their superstores.
Nisa-Today’s is funding the offer through cost reductions from manufacturers, with ambient, frozen, chilled and licensed categories among the areas featured.
Sharpe said some products would be at a permanent low price close to that offered by Tesco, some would be on permanent multibuy and some still on promotion.
However, he said that convincing manufacturers to support EDLP in this market was difficult, despite it driving greater volume sales. “Our buying team wants a much stronger proposition for members. The need is ever greater.
“But some suppliers seem more concerned about the reactions of Tesco or Asda than they are about the proposition to our members,” he said.
Siân Harrington