Co-op products get positive reception from independents

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Nisa and Costcutter retailers have reacted positively to the introduction of Co-op own-brand products in their stores.

Nisa and Costcutter outlets can order an initial 800 lines during the three-month introductory period, with all Costcutter stores having now transitioned into the new Co-op/Nisa supply chain following the Co-op’s completed takeover of Nisa Retail in May.

Costcutter Supermarket Group signed an exclusive supply deal with the Co-op in November last year in the wake of the collapse of previous supplier Palmer & Harvey.

A wider range of Co-op own-label products will be introduced to both Nisa and Costcutter stores later this year.

Harj Dhasee of Nisa Village Stores in Mickleton, Gloucestershire, said: “I’ve been surprised by how well the ambient range has been selling. We have snacks on a gondola end at the front of the store so customers can see them as soon as they come in.

“The summer is a great time to trial the products. It will be up to customers whether we decide to keep the range on a long-term basis.”

Emma Jenkins of Milverton Store, in Taunton, Somerset, added: “The response has been really good so far - chilled ready meals and pizzas in particular have been very popular.

“Most of the products have been replacements for the Heritage range so I’ve tried to keep the pricing close to the main Co-ops in my area.”

Josie Chamberlain, manager of Costcutter Codicote in Hertfordshire, is also selling the range at about the same price as nearby Co-op stores.

“We’re really excited about the products,” she said. “The range is a lot better quality than the old Independent range. We’ll be getting a 6% rebate on the products, too.”

Jackie North, manager at Nisa Local, Market Square in York, added: “I’ve been working with the team to decide what Co-op products we want. We are putting up posters so that customers aren’t confused by all the changes.”

Opinion

“At the moment we have a two-and-a-half metre bay for chilled food. Depending on the price point, we are probably looking to replace most of that with the Co-op range. ”

Arnaud Leujou, manager, Costcutter Brunel University, London

”We want to introduce the range all at once to make a big splash so we’ll most likely wait before introducing the lines.”

Tony Washington, Nisa member and owner of Taylors Foodstore, West Yorkshire

Brands overshadowed by own label

Own-label goods are outperforming national brands with a 52.5% value share of sales, data from IRI’s Private Label report shows.

It is the fourth consecutive year that own-label products have grown their share in the UK, and at one percentage point the annual growth rate is the highest seen across Europe.

Homecare and personal care goods, such as dishwasher products, kitchen roll and toiletries are delivering the most notable share gain, followed by the ambient food sector where retailers have been investing in crisps, nuts, popcorn and biscuit ranges.

Readers' comments (3)

  • What the 2% mince??? Co-op pricing to partners is poor in some instances cheaper to buy from Coop stores.

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  • Margin is very poor on selected lines, one thing I expected was increased p.o.r from the coop volumes. Also cases sizes are too big, case sizes aimed at large co op supermarkets!!

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  • Nisa have stolen too much margin out of the coop range

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