Select & Save is using retailer dissatisfaction over wholesaler corporate card charges to drive its ambition of becoming the new Nisa.
It comes as retailers began protesting at Dhamecha’s cash & carry depot in Hayes on Friday after the wholesaler revealed it was planning to introduce charges for business cards payments.
Dhamecha proposed charging 1.25% on business credit cards, 0.7% on business Mastercard debit cards and 0.2% on business Visa cards, with the latter capped at £2.50.
Following the uproar it sparked among the sector, with retailers now calling on their peers to boycott the wholesaler, Dhamecha is in the process of reviewing the proposed rates. A final fee structure is set to be revealed later this month.
“As a company we cannot pay our suppliers by corporate cards for stock purchases,” said Dhamecha in a notice to retailers. ”Whilst our peers have stopped card payments or raised prices, we believe a clear handling fee for certain payment methods is the fairest option.”
The Grocer has previously reported on more retailers paying with corporate cards in the aftermath of the pandemic, after a range of new companies flooded the market with them. This resulted in a much higher number of transactions occurring on cards with higher interchange fees, for which wholesalers ultimately foot the bill.
In light of the backlash Dhamecha has received, symbol group Select & Save has taken the opportunity to highlight its vision of creating a mutual organisation, which would see retailers who join the business and sustain purchasing volume offered equity shares.
“This would not only secure your rebates, but also entitle you to a share of commercial and trading income, and annual profits,” said Select & Save founder and CEO Kam Sanghera.
“This is about more than just margins – it’s about taking back control. Together, we can sit at the negotiating table with delivered wholesalers and cash & carry operators as partners, not as price takers.”
This would see it run similarly to Nisa before it was purchased by Co-op in 2018. It operated as a mutual organisation, which meant it was owned and controlled by its member retailers.
“It’s worth noting that since the demerger of Nisa, the retail sector remains the only segment of the food industry without its own mutual,” added Sanghera. “That must change. A united retail mutual would be unstoppable – one that drives better margins, reduces operational costs, and reclaims our voice in the supply chain.”
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