Costcutter retailers upbeat about Co-op future

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Many Costcutter-affiliated retailers are growing in optimism ahead of the upcoming supply deal with the Co-op Group.

Roadshows to brief members about the changes are ongoing, with more detailed one-to-one meetings to follow next month, before a full transition in April.

Retailers contacted by C-Store are generally upbeat about present and future supply arrangements, with many satisfied with their interim deliveries following the collapse of Palmer & Harvey in December.

Simon Lunn, of Simply Fresh Axbridge, Somerset, said: “I’m feeling much more optimistic than I was a month ago. A rep from Simply Fresh came to see me in the store as I couldn’t make the local roadshow.

“I’m really looking forward to receiving Co-op produce and to see how pricing will be affected as things have been slightly more expensive since moving to Nisa.”

Philip Moutray, of Costcutter Moygashel in Northern Ireland, said: “We switched to Nisa from Musgrave about four weeks ago. It’s going well; availability is great and the range has improved. I’ve recently paid more attention to the Co-op own brand and I’m impressed. I’m really looking forward to being supplied by the Co-op.

“My business development manager has been communicating with me regularly. I went to the roadshow in Armagh, and everything was answered that could be answered.”

Costcutter and Simply Fresh retailer Chaz Chahal said: “Deliveries have been really good. Nisa has reinvigorated business with a better supply solution. And with the Co-op we’ll get access to the breadth of product we’ve been lacking.”

Ricky Turner, manager of Simply Fresh Surrey University, added: ”Supply is working out well with Nisa and we will soon be moving over to the Co-op, which should give us a really robust supply chain. Everything is looking up and we’re feeling positive.”

Sue Nithyanandan, owner of Costcutter Epsom, Surrey, was also upbeat. “It’s gone full circle now that we’re being supplied by Nisa again. There’s been a few shortages of goods, but nothing compared with P&H. We’re excited about the future,” she said.

But Sat Deo has opted to switch his three Costcutter stores in Yorkshire to Spar. “Nisa deliveries have been okay, but we’ve decided to move. Lots of retailers have lost confidence in the leadership from head office. We’ve been promised too many things that haven’t been fulfilled,” he said.

Building Scale

Assuming that the Competition and Markets Authority (CMA) eventually clears the acquisition of Nisa, which was approved by Nisa shareholders last November, the Co-op Group will soon be buying and supplying on behalf of more than 6,000 convenience stores across the UK, taking in the shops operated by Costcutter and Nisa retailers and regional co-operative societies as well as its own outlets.

Research indicated that 43% of shoppers said they were more likely to visit a Costcutter store when/if the Co-op own-label is stocked there.

Readers' comments (11)

  • The Coop group sold stores to McColls because they said they were too small to sell the full own label range and do fresh properly. Now Costcutter retailers think the Coop is the answer to their prayers because they will have a huge range of own label and fresh. I wish someone would ac expkain how this is going to work.

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  • Wonder if Costcutter will make the same bullshit promises to the CO OP as they did to P & H.Their smaller retailers are incapable of being LOYAL to a main supplier

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  • ????????????????????????????????

    Let’s pick out 5 positive retailers and quote them all! I bet this took them weeks to hunt the 5 positive retailers out of all the whole group..

    The Co-op do not understand independent retailers and are already applying hard rules - let’s see how this goes down and how the relationship looks in 12 months time! I agree Costcutter will be making as many promises to the Co-op as they have retailers.. Full of complete BS!

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  • Hahahahaha

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  • The thing is anybody who has put up with Costcutter this far will believe the promises. They remind me of scam victims who are conned over and over. I think it might be a medical condition.

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  • Whoever is running Costcutter PR needs to join Darcy and the management team in the dole office. Utter shambles from start to finish.

    Agree with you Paul, good luck to all the Costcutter victims!!!

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  • We need to give this a go as options are limited.
    Nisa are more expensive than Costcutter were and then you pay surcharges for the privilege of being supplied. Nisa retailers seem to be the victims.
    If plof price is not cheaper especially on cigarettes then options need to be explored.

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  • Peter Costcutter, you had the best avaliable tobacco price when P &H were supplying Costcutter..However CSG NEVER passed that on to their retailers.

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  • Peter Costcutter, I don't understand your statement that options are limited. Today's, Spar, Bestway, Bargain Booze,.....

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  • Hi All, been a member (joke) for 20 years. Never had a say in what happens, a bonus/dividend but had lots of promises! Fed up with all the bull____! Looking to join a new partner with a future. Looking for a group that values my custom. Any ideas who to choose from Premier (not sure about Tesco tie up), Nisa (Not sure i like the 3% and minimum qty) or BestOne (warehouse pricing more expensive that any other C&C?

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