Costcutter has reported a 4% growth in sales for the year to April 2011. Sales across the group’s 1,550 stores grew to £640m in the past 12 months.

Managing director Nick Ivel attributed the success to the group’s loyalty scheme which was relaunched last year. 

“Loyal shoppers are key when it comes to staying ahead of the competition,” said Ivel. “The multiples have been putting loyalty schemes to good effect for years now, The difference with our scheme of course, is that it is truly local and really gives retailers the flexibility to use it to their own advantage, rather than being dictated to by a head office.”

Ivel added that the group hoped to grow on its success over the next 12 months. “Of course we are encouraged by these results in what are challenging economic and fiercely competitive times, but the hard work does not stop there,” he said. 

“Supporting our retailers to ensure they thrive is at the heart of our operation and we are constantly seeking ways to champion the independents and not only keep, but grow our share of the grocery industry.”