Forecourt operator Motor Fuel Group has signed a deal with Booker Retail Partners (BRP) to supply the majority of its stores and to introduce the Londis and Budgens brands to its network.
Some 300 of MFG’s 374 stores will be supplied by BRP from 1 July 2016, while Costcutter will continue to supply most of the remaining stores. MFG will continue its ongoing pilot with Morrisons, which is supplying five stores.
Jeremy Clarke, MFG chief operating officer, said: “After many months of trials and negotiations, we are delighted to be now working with the team at BRP. We believe that they can help us to develop our rapidly growing business model and also provide a rewarding offering for our contract managers and customers.
“Costcutter will continue to be an important supplier to our business as we diversify our brands to meet customer expectations and I would like to take this opportunity to thank them for their support in helping us build and develop our existing forecourt shop offer over the last four years.”
Booker Group managing director - retail Steve Fox said: “This new agreement is a fantastic opportunity for Booker Retail Partners to work in partnership with MFG and their contract managers to help grow and develop their business.
“We are delighted that the stores are joining Londis and Budgens brands and I am looking forward to serving them from July.”
Costcutter Supermarkets Group retail director Dan Quest said: “We are disappointed that Motor Fuel Group (MFG) is reducing the number of stores they have with us. However, we are pleased that we will maintain our long-standing relationship with them through the remaining stores that we will continue to service.
“We do not believe the lost volume will impact us or our retailers as the majority of the MFG volume is from tobacco where margins are small. As such, our actual revenue exposure is relatively low. Our strong recruitment programme means that we will be able to more than replace the lost volume and we do not expect any impact on our buying power because of the combined purchasing strength we have through the Buyco.”
He said Costcutter was formalising a new forecourt format which it trialled with MFG and would showcase to its other 400-plus forecourt retailers.