Nisa is to plough £10m into price cuts and promotions in 2012 in a bid to keep its retailers as competitive as possible.

The huge sum will be invested across a range of initiatives designed to drive down long-term prices across products, improve member profitability and give greater consumer value. The initiatives will range from price promotions to increased margin lines, and beneficial delivery terms.

As well as continued investment in the 18 planned promotional periods throughout the year, and a focus on themed activity, there will also be an upweighting of the popular WOW deals, with extra activity planned throughout 2012.

There will also be long term promotions on major branded products including Coca Cola, Nescafe, Red Bull and Walkers crisps, providing retailers with strong margins and consumer price points.

Surcharges will also be dropped on goods delivered from Nisaway on cages. Members who have the need to take goods on cages have historically been charged an additional 10 pence per case. Nisa has been able to remove this charge as part of its new distribution contract reducing member costs by an average of 1% on goods delivered on cages.

In addition, the investment sees the company launch further terms improvements which will see the introduction of over 1,100 products on to full pallet price discounts. The discounts have been calculated based on warehouse efficiency and will be set at £12 per pallet for pallet quantities of 90 cases or more, £6.50 for pallets of between 60 and 89 cases and £5.00 for pallets of between 45 and 59 cases. Dependent upon product, value and pallet configuration this change will reduce member costs on these goods by 1 - 5%.

“We’ve introduced a raft of initiatives as part of our £10m investment, which are intended to simplify purchasing and distribution for the member and benefit them directly in the form of increased margins and strong promotions on major branded products,” said John Sharpe, managing director, central distribution, trading and logistics. “We’ve always had excellent promotions and among the lowest prices in the sector, but we wanted to really help our members succeed and push onto the next level.”