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Major UK symbol group operator, Costcutter (part Bibby Line Group) has revealed sales down 18.5% to £512m for the year to 31 December 2017.  Store numbers declined to 1,776 at year-end as a result of lost members and exits from unprofitable contracts.  And performance was also impacted by falling service levels from, and the eventual collapse of, its supply partner Palmer & Harvey.

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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 »

Costcutter founder Colin Graves has joined the Co-op as an advisor on its wholesale and franchise development plans.

Chair of new Wholesale and Franchise Advisory Board

Graves will chair Co-op’s new Wholesale and Franchise Advisory Board.  The board was created following the Co-op’s £137.5m takeover of Nisa which completed last month, and the start of its wholesale supply agreement with Graves’ former business, Costcutter.

Wholesaling and franchising a focus for Co-op

Wholesaling and franchising have been identified as big opportunities by Co-op’s food business, helping it to grow sales, buy better and spread awareness of the brand into new communities.  The purchase of Nisa and the deal with Costcutter are already evidence of Co-op’s ambitions in this area.  The new board will look to develop these and other relationships further.

Experienced independent retailer

Graves is a well-known figure in independent convenience retail.  He founded Costcutter in 1986 and led the business for almost 30 years until it was sold to its current owners, Bibby Line Group, in 2011.

Costcutter at IGD Convenience Retailing Summit 2018

Sean Russell, Director of Marketing will share insights on the latest thinking on the convenience shopper, and Costcutter's 'Shopper First' programme at this year's must-attend summit, 26 & 27 September.

 

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 »

Former Tesco executive, Mike Hollis, has been announced as the new Retail Director at Costcutter Supermarkets; replacing Jenny Wilson, who has left the business after three-and-a-half years with the group.

Broad retail experience in UK and abroad

Having spent the last four years as Chief Operating Officer at DIY retailer Wickes, Mike Hollis' career has included senior roles at Coles in Australia, as well as Tesco Lotus in Thailand.  This followed more than a decade with Tesco in the UK, where he rose to Stores Director for London and the South-East.

Coincides with launch of Co-op supply deal

The arrival of Mike Hollis comes just at the moment that Costcutter's new supply partnership with Co-op is due to go live.  After some six-months with no overarching single supply contract, Co-op will take on the distribution to the whole Costcutter store network as of 28 May.  Under the terms of the new deal Costcutter retailers will benefit from a simplified structure of charges, with the opportunity to earn up to 6% rebate for hitting agreed loyalty targets.  The minimum drop sizes for the service will be 80 cases of ambient product and 30 for chilled and frozen.

Costcutter at IGD Convenience Retailing Summit 2018

Sean Russell, Director of Marketing will share insights on the latest thinking on the convenience shopper, and Costcutter's 'Shopper First' programme at this year's must-attend summit, 26 & 27 September.

 

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 »

Presentations

10/10/2018

An essential summary of trading priorities, latest developments, and other key commercial insights for Costcutter.

03/10/2018
We review five key themes from this year's Convenience Retailing Summit.
22/06/2018
Find out how technology is changing the convenience store payment experience, in the UK and globally
View all presentations

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This in-depth guide to the United Kingdom explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.

An essential summary of trading priorities, latest developments, and other key commercial insights for Costcutter.

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