29 November 2017
Following the recent announcement concerning Palmer and Harvey (P&H), The Co-op and Costcutter Supermarkets Group (CSG) have today (29 November) confirmed an agreement that will see Co-op become the exclusive wholesale supplier to CSG and the 2,200 Costcutter, Mace, Simply Fresh, Supershop and kwiksave convenience stores across its network from Spring 2018.
The deal will also provide the opportunity for CSG’s independent retailers to become Co-op franchisees.
Given the unexpected P&H announcement, The Co-op has also confirmed that it is looking at practical short-term ways it can support independent retailers within CSG, as part of a wider industry response, until the formal agreement begins in Spring 2018.
Commenting Darcy Willson-Rymer, CEO of Costcutter Supermarkets Group said
“With P&H no longer able to supply our stores, we have activated our contingency plans that will see our retailers supported by the Co-op and other suppliers in the run up to our deal with the Co-op.”
Commenting Jo Whitfield, Chief Executive of Co-op Food said:
“We are operating in a dynamic market environment and this deal, coming shortly after our Nisa announcement, shows how we are positively responding to the changes occurring within the sector.
“Our Food business is going from strength to strength in what is clearly a challenging retail market. We recently reported our 14th consecutive quarter of like-for-like sales growth and this agreement will further strengthen our ability to offer customers great products at great prices.
“Whilst our deal with Costcutter will start formally in Spring 2018 we are looking at practical ways we can support independent retailers during this busy trading period, in light of the news concerning P&H. It is essential that we maintain a strong independent retail sector and the Co-op is committed to playing its part, along with others in the industry, in ensuring this occurs.”
For more information please contact:
The Co-op Group
Jon Church - 07545 210 812 Russ Brady - 07880 784 442
(Sophie Hayes & Ellie Bottomley) 0113 307 0113
About the Co-op Group
The Co-op, one of the world’s largest consumer co-operatives with interests across food, funerals, insurance, electrical and legal services, has a clear purpose of championing a better way of doing business for you and your communities. Owned by millions of UK consumers, the Co-op Group operates 2,500 food stores and over 1,000 funeral homes, with more than 69,000 employees and an annual turnover of over £9.5 billion.
The Co-op provides wholesale services to 15 independent co operative societies, as well as its own estate of 2,500 stores across the UK.
About Costcutter Supermarkets Group
Costcutter Supermarkets Group is part of Bibby Line Group, a diverse and forward-looking family business delivering personal, responsive and flexible customer solutions for over 200 years. Costcutter Supermarkets Group operates a network of 2,200 convenience stores across the UK through the Costcutter, Mace, Simply Fresh, kwiksave and Supershop brands. The majority of the stores are owned and operated by independent retailers. Bibby Line Group is a £1.4 billion business, operating in more than 20 countries, employing over 4,500 people in industries including retail, offshore, financial services, distribution, shipping, marine based businesses, plant hire and woodland burials.