Staying competitive in a tough market

The local convenience store market is under real pressure right now; a mix of economic, operational, regulatory, and competitive challenges that are all hitting at once.

The convenience store sector is still resilient, but it’s being squeezed from all sides: costs are rising, consumers are spending less, competition is intensifying and on top of this, crime and regulation are further increasing pressure. To survive and thrive, stores will need to adapt the right product mix, while also focusing on local convenience and community, as well as staying agile with both pricing and day-to-day operations.

Costcutter is responding to these challenges by helping independent stores survive and stay competitive in a tougher, price-driven market. Responses have included taking advantage of being part of the Bestway symbol group to invest into lower wholesale prices on key branded products – with a focus on improving retailer margins, removing unnecessary fees where possible, plus renewing their multi-year agreement with Co-op Wholesale which allows them to maintain strong service levels and product availability.

Costcutter: the right fit for you?

Identifying the right model and format for retailers to maximise their profits based on store proposition can be challenging. As part of the Bestway group of fascia stores, Costcutter has a team of business development managers (BDMs) who can support business plans for every type of convenience retailer. In the field, a dedicated Costcutter BDM team supports retailers and develops their stores to drive business performance. In addition, a store design and development team works with market insights to help retailers maximise their sales, profit and footfall.

Working collaboratively with suppliers helps retailers to stock the right range, improve profit margins and offer shoppers great value. Costcutter retailers benefit from access to over 2,000 Co-op own-brand products, a 14,000 SKU range plus access to direct-to-store suppliers. As a credible chilled food offer has become increasingly important for consumers, Costcutter supports retailers via a dedicated chilled distribution centre, an increased range of fresh food in wholesale depots, and a growing range of long-life fresh products including pizzas and ready meals.

A continued multi-year partnership with Co-op Wholesale has enabled greater investment in promotions to drive shopper footfall and loyalty. Long-term partnerships have also been agreed with Simply Fresh and James Retail, the 40-strong nationwide convenience and travel interchange operator, while Penny Petroleum continues to convert sites into the group.

Additional incentives for Costcutter retailers include:

● £0 membership costs.
● A sector-leading marketing package for new and refitted stores, including digital support and social media guidance to help retailers reach consumers effectively.
● 17 three-weekly promotional periods. All stores receive a comprehensive point-of-sale kit, including window posters, shelf talkers, stack cards and shelf edge labels, plus an implementation guide for every promotional period. Retailers also receive a promotional offers booklet ahead of their point-of-sale kit, and are eligible for up to 2,000 consumer leaflets, distributed either to store or directly to shoppers’ home addresses.
● Access to Costcutter Vault, a portal providing additional point of sale, uniform, hardware and other miscellaneous sales aides.
● C-POS, Costcutter’s own in-house Epos system.
● Regular retailer forums for networking, sharing best practice and access to guest speakers and industry partners.
● Ongoing trials of age verification technology across digital services, plus support for Scottish retailers ahead of the October 2027 deposit return scheme (DRS) compliance date.