My Local, the new convenience store group which acquired Morrisons’ 140 c-stores last week for just £25m, has awarded a £1bn supply deal to Nisa.
My Local is led by entrepreneur Mike Greene (famous for his appearance on Channel 4 show The Secret Millionaire, and a familiar face to the industry thanks to his 20-plus years service as a board member of the Association of Convenience Stores) and is backed by Greybull Capital, which are set to relaunch the stores under the banner My Local. Over the weekend it revealed that symbol group Nisa will supply it over the next five years, in what the retailer said was one of the largest deals in the convenience sector, and which observers say is a “stunning coup” for Nisa.
It makes My Local one of Nisa’s most significant wholesale customers.
Greene, My Local’s chief executive, said Nisa will enable it to deliver “the fast, fresh service that our customers expect and we see great opportunities to drive benefit together”.
The agreement will see deliveries into My Local stores six days a week which will consist of 45% fresh produce.
Individual stores will be able to order produce based on the local area and customer demand, giving the chain a strong local/regional focus which should help it compete with rivals.
My Local says it will have access to regional suppliers that can deliver goods from within 15 miles of any store. The remainder of the produce will be supplied through Nisa’s central distribution system.
“We share a community focus with My Local which will underpin our future business relationship,” said Nisa’s CEO Nick Read in a media statement.
Greene maintained that My Local’s “superior logistics, layout and truly ‘local’ proposition” would ensure it succeeds where Morrisons failed (the multiple famously lost money on all its c-stores and was regarded as having the weakest convenience offer of all the multiples aside from Asda).