Costcutter/Co-op relationship moves to next stage

Date : 05 July 2018

Costcutter's new supply deal with Co-op has now been rolled out to all stores in its network, putting an end to over six months of contingency arrangements, in the wake of the collapse of former distribution partner Palmer & Harvey.  The turbulence of the last year saw some 400 stores leave the symbol group, leaving the total number in the network at 1,776 at the end of 2017.  However, it has continued to recruit successfully with some 100 stores joining over recent months.

Co-op private label to be added to ranges

With all Costcutter group retailers now receiving their core supply through the Co-op-owned Nisa supply chain, the next step in the development of the relationship will be the introduction of Co-op private label lines to the Costcutter range.  Over the next 12 weeks some 800 Co-op lines will be made available to Costcutter stores; however retailers will need to satisfy eight specific brand disciplines to qualify for access to these.  These standards will include a maximum price-point and the maintenance of Co-op's own processes with regard to chilled and fresh products.

Costcutter appointed 'master franchisee' for the Co-op brand

As well as offering its own fascia packages to independent retailers, in the future Costcutter will also be able to recruit stores to a full Co-op franchise package, where clear criteria are met.  In an ongoing trial of the Co-op package, Costcutter has converted one of its company-owned stores to the format, producing a sales rise of almost 70%.  Costcutter now plans more trials to test the new model further, before making it available to independent retailers. 

Shopper First programme now in 55 stores

The supply issues experienced in the first half of 2018 have slowed the roll-out of the new 'Shop the way you live' store format, first launched in late 2016.  However, there are now 55 stores operating the format, backed with the full package of demographic insights to optimise all shopper opportunities in their local catchments.  With Costcutter's supply chain issues now resolved progress this will accelerate, and 100 additional stores are currently in the pipeline to implement the programme.

Costcutter at IGD Convenience Retailing Summit 2018

Sean Russell, Director of Marketing will be sharing more on the insights developed from Costcutter's unique Shopper First programme on 26th September - to find out more click below:


IGD Convenience Retailing Summit 2018


26-27 September, London


Convenience continues to outpace big store formats. This year we have launched a two-day event to help you explore every opportunity, possibility and future trend to boost your business.

Find out more »