Nisa has been using historical data in its contingency planning with suppliers to avoid repeating the availability issues experienced at the start of the coronavirus lockdown, according to CEO Ken Towle.

At the start of the government lockdown, retailers experienced availability issues due to panic buying and suppliers pulling some of their supply and convenience-specific formats from independent wholesale.

In March, Nisa had to cancel fresh and frozen deliveries to retailers “to protect the operation and ongoing service to partners”.

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Asked by Better Retailing how Nisa is ensuring availability is maintained going forward, Towle said: “We’ve been doing a huge amount of business planning with suppliers and encouraging them to share issues and concerns. If a manufacturer knows they can’t get materials in, it’s better to know so we can plan for it.

“The category in shortest supply is lager and cider, particularly with the capacity and availability of bottles and cans. This has been due to a switch in demand as consumers went from drinking in restaurants and bars to drinking at home. We’re in regular dialogue with suppliers and this is helping.

“Our relationship with Co-op has also been significant and the advantage is that it allows us to carry more weight with suppliers. Where we have an agreement to procure product, we’ve been really clear that there should be appropriate allocation between Co-op and Nisa. There’s been no issue and Nisa partners have had their fair share.”

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Towle added that the wholesaler has also been planning ahead for the likelihood of a recession affecting availability in its stores. “We’ve been looking at what happened in the 2008/2009 recession and applying our own models on how another recession would potentially play out as a result of the pandemic,” he said.

“We’re looking at what it will mean for demand and what products customers will want. We’re also factoring in how the return of schools alongside busy seasonal periods such as Halloween and Christmas will affect customer behaviour. Next year is going to throw a few surprises because it will be both a big recovery and recessionary year.”

Wholesale availability 20% down but improving

The Co-op own-label range within Nisa stores saw double-digit sales growth during lockdown.

“The story throughout lockdown has been around range rationalisation and reduction with a number of branded products, but it’s been the opposite with own-label,” said Towle.

“Own-label manufacturers and suppliers have been able to step up and keep up with demand.
Our share of own-brand has increased during this time.”

Find out more on our coronavirus information hub for retailers