Nisa has ended the membership of a prominent retailer as part of what CEO Nick Read (pictured) said is a drive to focus on members that “contribute to the club”.
The group has served noticed to North East Convenience Stores, whose contract expires on 1st August.
Nisa had revealed that as part of its turnaround strategy it would address a number of loss-making members. The work focusing on loss-making accounts is a critical part of the company’s turnaround process.
As part of its strategy to deliver profitable growth and security to the business, and within the context of the focus on non-profit making accounts, Nisa has declined to extend the membership of North East Convenience Stores and has served notice.
“The philosophy of the Nisa business is that it is a mutual style model for the benefit of all members,” said Nick Read, Nisa CEO. “As a point of principle I believe Nisa should be for the many and not the few. This has not been the case in past years and we are addressing this.
“We are moving away from loyal members subsidising other members and from non profit-making members benefiting from all that is good about Nisa, but not contributing to the club. That is not the purpose of a proud, independent, mutual organisation.”
Nisa said that while the retailer, based in the north east of England, is a good business, it did not fit the terms of Nisa’s mutual business model and would therefore cease to trade with Nisa from 1st August 2016.
“A move such as this is regrettable where neither party can find a mutually beneficial position to move forward, but Nisa needs to exist for the benefit of all of its members and we have a responsibility to ensure that happens” added Read.
