Nisa-Today's will seek to gain better terms from suppliers by combining the buying power of its wholesale and retail arms.

The move is part of its new business strategy in the wake of last year's collapsed merger with Costcutter.

Non-executive chairman Edwin Booth told The Grocer the idea was still being developed, but that if Nisa-Today's was to remain competitive it had to maximise the potential from the volumes of all members.

"We have to find ways of reducing the costs to serve our members," said Booth. "This will involve talking to suppliers and finding common denominators between the needs of two different sectors."

He said he hoped this move would dispel

persistent rumours that the group might seek to devolve its Nisa retail arm and the wholesale side of the business, the Today's Group.

Nisa-Today's also hopes to become better equipped to deal with issues like last year's controversial merger with Costcutter, when a lack of dialogue with members resulted in open rebellion from many of them.

The group has formed a Strategic Development and Acquisitions Committee which will meet regularly to consider corporate

development matters and whose make-up will include Nisa members.

"This will communicate regularly with the board with ideas on how to grow and acquire new business," said Booth.

"It will mean we will be able to react more swiftly to any offers or proposals made to the group."

The proposals have been welcomed by members, including the rebels behind the Nisa Members Association, which derailed the attempt to merge with Costcutter.

NMA chairman Mark Proudfoot said: "Lowering the cost of goods, working with wholesalers effectively, implementing corporate governance and recruitment of new members was the NMA's platform at last year's agm."