Following its 2012 price cut initiative, Nisa has announced that it will again launch a £10m investment in price cuts and promotions to assist retailers in a competitive market place and to aid their customers during a challenging economic period.
The £10m will be invested in a range of initiatives designed to drive down long term prices and improve member profitability and, subject to manufacturers price changes, will be maintained for a full year. The initiatives will range from price promotions to increased margin lines.
The price cuts and promotions will focus heavily on branded products, including Carling, Echo Falls, Coca Cola and popular energy drink Red Bull, and will take the shape of special WOW deals, stunted offers and one week specials. There will also be significant seasonal promotional investment and all in addition to the usual 18 period promotional and margin investment.
As with the previous year’s investment, there will again be a further push on fresh milk, with two-litres SKUs at two for £2.20 offering up to 29% margin, which proved a major success for members and helped maintain a strong competitive offer against the multiples.
“Last year’s £10m investment proved understandably popular with both our members and the consumer, with a great range of deals available. It proved a real footfall and sales driver for our members,” said John Sharpe, Managing Director, Central Distribution Trading and Logistics. “This year’s investment aims to improve on that success. We’re putting everything into an increased range of products, so there will be much more value to be had from big brand lines plus our own label fresh ranges will receive a boost with some great margin building deals.”