Nisa to roll out franchise trial

NISA, the convenience store group, has announced a new franchise trial which will roll out to a number of stores by the end of 2014.

The Scunthorpe-based group, which supports 4,000 independent retailers across the UK, said the franchise option, if successful, will help to further broaden Nisa’s offer to independent retailers allowing them to trade under their own fascia, under one of its symbol brands or under this new franchise arrangement.

It said the trial of a franchise option will be offered to Nisa symbol retailers to “encourage retailers to adopt a highly systemised, disciplined approach”, which could see them earn an extra 3% in terms of profit through increased sales and greater efficiencies.

Amanda Jones, chief operating officer, said: “Our view is that franchising will have an important impact on the convenience market in the next few years and the potentially more lucrative franchise business model will prove attractive to quality independent retailers.

“Therefore Nisa has made the strategic decision to trial this under our business model. If the trial is successful, the franchise model will provide more choice for entry to market ensuring that Nisa continues to be the retail group of choice for independent retailers.”

The news follows Nisa’s announcement yesterday that it saw sales climb 10.5% to £1.58bn while volumes increased 12.9%.

The business, which was founded by Yorkshire retailer Peter Garvin and Dudley Ramsden, a Grimsby wholesaler, in 1977 also reported EBITDA of £12.3m for the year to March 31, boosted by a contract to supply around 400 McColl’s convenience stores.

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