Costcutter agrees exclusive supply deal with Co-op Group

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The Co-operative Group will become the exclusive wholesale supplier to Costcutter Supermarkets Group (CSG) from spring 2018, the two groups announced today.

In the meantime, Costcutter, Mace, Simply Fresh, Supershop and Kwiksave convenience stores will be supplied by the Co-op and other suppliers to fill the void left by yesterday’s collapse of Palmer & Harvey, Costcutter ceo Darcy Willson-Rymer said. 

The deal will also provide the opportunity for CSG’s independent retailers to become Co-op franchisees. Costcutter also plans to “scale back and withdraw” the Independent brand, with retailers gaining access to the Co-op own brand. 

“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,” Willson-Rymer said.

Co-op Food chief executive Jo Whitfield 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.”

Readers' comments (29)

  • CSG deal with P&H responsible ultimately for the end of the company.P&H board only saw ££ signs.Eterington etc are responsible for the jobs lost.

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  • This all stinks coop and costcutter have just done the biggest robbery in broad daylight ever

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  • The supply chaos could create tens of thousands of jobs being lost in retail, catering and the drinks trade. Retail is heavily over footaged and this could just be a natural shakeout, causing big community and local economic problems.


    The interruption in the supply of food and drink could just be enough to reduce working cash and capital in shops, forecourts and restaurants, and cause businesses to become bankrupt.

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  • Er, doesn't this actually mean that Costcutter will be supplied by Nisa? As for the Independent brand, P&H website still claims it was their own label, no mention of Costcutter.

    I am still amazed that apparently sensible retailers stayed with Costcutter during the P&H fiasco.

    Last year the Co-op didn't see a future in small stores and dumped them on McColls. Wouldn't these stores have made a better basis for a franchised chain?.

    If there is any long term planned at the Co-op it isn't evident from recent events.


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  • So if a Costcutter retailer becomes a Co-op franchisee and gets his supplies from the Coop (or Nisa!) what is the Costcutter for?

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  • What a mess! It would have been in everyone’s best interest to keep Costcutter in a supply deal with Nisa.

    Instead so many broken promises!

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  • the fat cats ate their cake and went home leaving the mess for someone else to deal with.

    how long till co-op decides its not viable for them to supply so many small stores/indies in the future?

    won't be many indies around in the near future at this rate..

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  • Bets are on that the Co-op are pig sick with the purchase of Nisa. The Commercial Estate Agents of Convenience Retail and Catering Property are predicting that there will be a crash in Goodwill values as the chaos in the supply chain begins to Bite.Cash fows and working capital will become scarce as profits are hit in the scramble for goods - especially at peak trading Christmas and New Year.
    Predictions suggest that outlets with goodwill premiums last week of up to £500,000 will be down to the 10s of thousands. Co-op may have overpaid for Nisa and Tesco Booker. Hold your breath for opt outs.

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  • CO-OP AGREE DEAL WITH COSTCUTTER FIRST BUT KEEP IT QUIET, THEN BUY NISA BUT DON'T TELL THE NISA MEMBERS OF THEIR CUNNING PLAN, NISA MEMBERS VOTE TO SELL TO CO-OP, THEN CO-OP UNVEILS THE MASTERPLAN. CUNNING, VERY CUNNING. CO-OP HAVE EFFECTIVELY JUST BOUGHT THE DITRIBUTION NETWORK TO ENABLE THEM TO SUPPLY COSTCUTTER, WHO CARES ABOUT NISA. AND GOODBYE DHL, HELLO BIBBY DISTRIBUTION. BEAUTIFUL.

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  • Yes HOHOHO there must be something in this deal for Bobby.

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