Nisa-Today’s fears for survival of independent retailers

independent retailers will not survive if the price gap between them and the big supermarkets remains, according to a senior figure at Nisa-Today’s, the convenience store and buyers’ group.

Writing in Nisa-Today’s Your Consortium magazine, Leo Gillen, Nisa Retail Council chairman, says he “can’t remember a tougher period for retailers” with high street vacancy rates of almost 15 per cent. Mr Gillen says he’s dismayed by the struggles many are facing in the retail trade.

The article states: “Some are experiencing troubling times, others have regrettably fallen into administration...Suppliers of the big multiples, across all sectors, I’m afraid, are reaping what they have sown.

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“The independent sector will not survive if the disparity in prices between the big four supermarkets and ourselves continues.

“We have good relationships with our supplier contacts and now is the time to work together to close our gap in terms.

“All our jobs depend on our trading relationships, so it’s time to get down to business and improve our margin.”

Mr Gillen highlighted the fact that Bank of England Governor Mervyn King had warned that the squeeze has another three years to run.

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He added: “We need to work together and innovate to keep independents ahead of the game...When we work together with suppliers, on similar terms to the multis, we are unbeatable. This must be our goal over the coming months.”

In May, Scunthorpe-based Nisa-Today’s revealed that it was set to achieve turnover of £1.5bn for the first time.

Neil Turton, the company’s chief executive, told Your Consortium that it was on course to grow from the £1.42bn sales for the year to March 2010.

Mr Turton said the firm had added £500m to sales over the last six years despite a “very tough trading background”.

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The coming year would be “tougher”, he added, but said Nisa expects to grow four per cent in cash terms and two per cent in volume.

The chain, Britain’s biggest buying group for independent retailers, is considering splitting wholesale group Today’s from Nisa retail.

Writing earlier this year in May, Mr Turton said the outcome would be for members to decide and wholesalers will have consultative meetings “in the next few weeks” and the group would continue to be open about the process.

In 2009 Bibby Line tried to buy Nisa-Today’s, resulting in a bid worth £51m that was rejected by management as being a “very significant undervaluation” of the business.

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