Costcutter retailers promised "formal announcement soon"

  • Print
  • Share
  • Comments (11)
  • Save

Costcutter retailers have been promised a formal announcement on the future of the group, relating to “exciting opportunities on the table”.

In a letter to retailers, Sir Michael Bibby, managing director of parent company Bibby Line Group, suggested that collaboration was on the cards.

“I believe we are making real progress on a number of fronts which will allow you to unlock significant growth for your business…” he wrote.

“The good news is that the market is moving quickly. There are exciting opportunities on the table right now which mean that Darcy [Willson-Rymer, Costcutter CEO] and I hope and expect to be able to make a formal announcement soon. Due to confidentiality agreements we are unable to give a running commentary on progress until any changes are confirmed.”

He said any collaboration that Costcutter enters into must resolve supply chain issues; continue to build volume through great prices and promotions; and strengthen the own brand offering.

The proposed Tesco-Booker merger had taken the entire market by surprise and had prompted discussions across the sector “that would not have seemed imaginable just one year ago,” Sir Michael wrote. “Bibby Line Group and Costcutter Supermarkets Group have been working together to ensure we are at the forefront of these conversations, exploring all options available.”

Readers' comments (11)

  • Bye bye P&H then.

    Unsuitable or offensive? Report this comment

  • Tie in with a multiple perhaps whilst retaining the 'Independent' brand as the symbol brand? I agree with RETAILER that P&H may well be finished as a viable business, and on that subject I wonder what will happen to the Central Convenience operations?

    Unsuitable or offensive? Report this comment

  • The feeling with the Central Convenience operation is it COULD be used by a slimmed down P&H as a niche symbol concentrated for logistic reasons on the South and South West.Depot sales would fund such a plan

    Unsuitable or offensive? Report this comment

  • I don't know what all the excitement is about tying up with multiples is .if you really think they will pass on extra margins on to us you are deluded the only reason they want in on the act is because in the not to distant future everybody will be getting delivered via internet and their model is doomed and convienace is where the profits will be .Tesco market share has peaked its downward from here.

    Unsuitable or offensive? Report this comment

  • To Mace Store,I fear for your future.Where do you think internet purchases come from?They are CENTRALLY DISTRIBUTED,something the Mults are good at

    Unsuitable or offensive? Report this comment

  • The mults are nood as good as amazon. supermarkets are greedy they only want in on the act act to beef up there profits why else do they want in? .if you have a strong focus on local suppliers you will do just fine .

    Unsuitable or offensive? Report this comment

  • It’s now pretty clear to all that the only people who can salvage various symbol groups are the mults and they alone has the capacity and scale to provide the kind of cost effective solutions that the independent retailers are seeking through their symbol partners. I think it would be delusional to think otherwise.
    The idea that the symbols and independent retailers can survive when new entrants like Amazon and ever growing threat of German discounters is now knocking on our doors doesn’t hold water either. Couple that with appalling balance sheets of some symbols sadly proves my very point that it doesn’t add up.
    The market is also changing towards eat now, fresh and food to go on the move with chill and fresh playing a major role in today’s customer needs. All this cannot be cost-effectively delivered by the old cash & carry models. They too will have to change.
    I would suggest retailers concentrate more on what’s in it for them and their future rather than the conspiracy theory about what the mults are getting out of it. I just hope that all the symbols which represents the majority of independent stores see light in view of Booker/Tesco merger & McColl’s arrangement that the writing is on the wall.

    Arjan Mehr Londis Bracknell

    Unsuitable or offensive? Report this comment

  • Bibby/Costcutter are about to acquire P&H. I have always thought it strange that Bibby, whose business is distribution, used a third party to distribute to their wholesale customers. Imagine a scenario where other symbols follow the Costcutter and McColls model i.e. not actually running the logistics side of the business. There would be no need for consolidation of actual trading but the benefits of consolidated logistics would bring enormous savings to symbol groups both directly and from the savings made by manufacturers in delivering to fewer points. No-one is better placed to carry out this consolidation than Bibby.

    You read it here first.

    Unsuitable or offensive? Report this comment

  • Hi Jonas,

    This idea was first mooted years ago at the first meeting of Costcutter members with Sir Michael Bibby. It was emphatically raised as a question to Sir Michael.

    So it was first heard then. Beaten to the point by years.

    Unsuitable or offensive? Report this comment

  • I am suggesting much more than a Bibby takeover of Costcutter's logistics involving for example Landmark, Keystore, Simply Fresh, CCS, etc.

    Unsuitable or offensive? Report this comment

View results 10per page | 20per page

Have your say

These comments have not been moderated.

You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment.

Any comment that violates these terms may be removed in its entirety as we do not edit comments.

If you wish to complain about a comment please use the “report this comment” facility or email groceremails@wrbm.com

Mandatory
Mandatory
Mandatory
Mandatory

Related images

  • The Sandpiper company hopes to acquire the Island’s 16 Costcutter stores
  • Print
  • Share
  • Comments (11)
  • Save
Sign in

Newsletter Sign-up

I wish to receive the following newsletters:

FOLLOW US