Simply Fresh looking to move to new supplier as Sainsbury’s supply deal comes to an end

The decision meant that Simply Fresh’s plans to roll out the Sainsbury’s supply agreement to many of its stores were stopped in their tracks.

Five of the 88 Simply Fresh stores had already entered into a wholesale arrangement with Sainsbury’s, whose move out of wholesaling came out of the blue.

Davinder Jheeta, creative director at Simply Fresh, said the five retailers were free to decide for themselves whether to continue being supplied by Sainsbury’s for the next 12 months before the agreement comes to an end.

Sainsbury’s said that it had offered to continue supplies for 12 months to make the transition easier for the stores it was supplying.

Jheeta added: “We are considering our options and are in talks with a number of other potential suppliers.

“What we are sure about is that the model we have developed is the right one and we are fully committed to that.”

Sainsbury’s said last week that it had decided to close its wholesale operation to simplify its business “so we can focus on what matters most to our customers – lower prices, exciting new products and convenient ways to shop”.

The decision was all the more surprising as it was only in December last year that Simply Fresh and Sainsbury’s agreed to extend their supply deal, which had been on trial since the start of 2020.