Co-op members divided over Nisa deal impact

Co-op members reacted cautiously to the news of a planned Nisa deal, with fears of a repeat of the Co-op’s ill-fated Somerfield’s takeover.

Unlike Nisa members, it is understood that Co-op members will not get a vote over the deal, which depends on approval from by Nisa retailers and the Competition and Markets Authority.

Describing the deal, Co-op member Guy Gibson wrote: “If we are not buying the Nisa stores and the Nisa owners can still get there goods from their existing supplier exactly what are we getting for our money? I can see another Somerfield fiasco happening.”

Since buying Somerfield’s in 2008 for £1.57billion, the Co-op was forced to sell off many of the former supermarket’s stores in recent years as the group struggled to recover from the collapse of its banking arm. However, other members said it was wrong to associate the two deals.

Co-op member Anthony responds: “Where do you think the Nisa shops will buy from, if not from the Co-op? They are part of a collection of shopkeepers for the buying power. They don’t have that on their own, so prices go up. The deal increases Co-op’s buying power and should help with prices, making it more attractive to deal with us.”

Other members referenced pay grievances, understaffing, redundancies and the closure of existing Co-op stores in suggesting the £137.5million share buyout of Nisa retailers would be better spent within the Co-op’s existing estate.

A statement by the Co-op responded to its members explaining: “We see this as adding value to our business by increasing the reach of our great own brand products, and an important part in helping us grow our profits so we can deliver rewards back to our members and their communities.”

A recent poll by Retail Express found Nisa and Co-op need to convince Nisa members of the virtues of the deal, with a majority currently against the take-over. A road show taking place this week is expect to address Nisa shareholder concerns. One Nisa retailer who attended one of these events told Retail Express that they left with “plenty to think about,” adding that they expect the debate to continue right up until the deadline.