The team that bought 140 Morrisons convenience stores earlier this week has announced it has signed a five-year supply deal with Nisa Retail worth up to £1bn.
Fresh sales will make up a large part of the offer of the stores, which will be renamed My Local, with 45% of the mix being fresh based, while Nisa’s flexible business model will allow each store to source product specific to the needs of its local community. This will support the key business strategy of My Local to improve the range, availability and layout of products in its stores, creating a truly local customer experience.
Mike Greene, chief executive of My Local, said: “We are delighted to have reached agreement with Nisa, the UK’s leading specialist delivered wholesaler. This partnership is essential to the future of My Local and will form an important part of our plans to create a sustainable, profitable business for the future. We look forward to working with Nisa to deliver the fast, fresh service that our customers expect and we see great opportunities to drive benefit together.”
My Local stores will join Nisa’s independent and specialist business unit and will be supplied through Nisa’s central distribution system, but with flexible access to local and regional suppliers, allowing My Local to meet its commitment to source at least 5% of its range from within 10 to 15 miles of any store.
Nick Read, chief executive of Nisa, said: “We know Mike and his team well and we are very excited to be working with them. Nisa offers an unrivalled range of products, we out-perform the market on fresh food, particularly through our award winning Heritage range, and our distribution service leads the sector. We also share a community focus with My Local which will underpin our future business relationship, while the communities they serve will benefit from our ‘Making A Difference Locally’ charity.”
The agreement will also enable My Local to improve product availability and frequency of supply, with deliveries into stores six days a week.