Sainsbury’s Said To Be Close To Bidding For Nisa Convenience Group
UK retailer Sainsbury's is said to be close to submitting a formal bid to acquire Nisa, a wholesaler and convenience-store group that counts more than 2,500 independently owned stores around the UK as members.
It is expected that the deal will cost Sainsbury’s around £130 million. However, there are signs that the deal could face objections from Nisa members, including the McColl’s convenience group.
The move is seen as a counter to Tesco’s acquisition of Booker for £3.7 billion, which is expected to be completed this year, barring competition roadblocks.
Commenting on the proposed deal, Catherine Shuttleworth, CEO at retail and shopper-marketing agency Savvy, said, “No surprises that Sainsbury are rumoured to be in the running for a bid for Nisa. After a week where they have talked about creating distinctive brands and talked about selling exclusive non-Sainsbury branded product to other retailers in and out of the UK, finding new ways to retail food are clearly on their mind.
“Anyone considering buying Nisa will have a mammoth job on their hands, managing the differing demands of the members in the model – many hoops to jump through yet.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.