Independent convenience business Select & Save head has strongly criticised Co-op Group for not being fair with independent retailers.
The Co-op Group on Thursday (3) reported fivefold increase in profit and plans for further opening of grocery stores this year despite a downturn in its wholesale division.
The business-to-business (B2B) arm, which supplies independent retailers through its Nisa network, reported a £1 million loss compared to a £14 million profit in 2023.
The company attributed the loss to "continued challenging market conditions" and strategic price investments to help retail partners navigate inflation.
However, Kam Sanghera, MD of Select & Save, has slammed Co-op Group for not supporting the independent retailers who stock its products.
Sanghera wrote on LinkedIn, "Co-op’s retail division continues to post strong profits, expanding its presence on high streets across the UK. But at the same time, Nisa — supply independent retailers — is reporting financial losses and growing pressure.
"Independent retailers are the heart of retail in local areas. They carry the Co-op brand, stock their products, and serve customers in places the big chains often overlook.
"The question is simple- If the Co-op group is thriving, why isn’t more being done for their independent supply chain?"
In response to recent media reports that Co-op own label products are cheaper at local Co-op shop than Nisa (now rebranded as Co-op Wholesale), Sanghera stated that ethics and community are supposed to be core to the Co-op identity.
"But values only matter when they are put into practice — especially when times are tough. What will be their next excuse, the loss of the Bestway/Costcutter contract?"
Sanghera called on Co-op Group to invest in its wholesale network and support the retailers that have long supported them.
"It’s not just good business. It’s the right thing to do," he said.
Earlier this week, it was reported that Nisa, now rebranded as Co-op Wholesale, will cease supplying fresh, chilled and own-label range to Costcutter stores from Jan 1, 2026, bringing an end to the long-term supply arrangement with The Co-op.
The present contract is ending on Dec 31 this year. It was initiated in 2018.
A Nisa spokesperson confirmed to Asian Trader, "We are not in negotiations and our contract with Costcutter ends on 31 December, 2025.”
