Costcutter and Palmer & Harvey confirm joint venture

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Palmer & Harvey and Costcutter have announced the details of their new joint venture and distribution agreement, as revealed by The Grocer last week.

The two companies said they had formed a joint venture buying company called The Buyco, which will be 50/50 owned and have a buying power of £5bn to “negotiate the best deals through maximum volume”.

P&H will also hand over the direct management of its symbol fascias Mace, SuperShop and Your Store to Costcutter from 7 April to focus on wholesale distribution.

It has also signed a new eight-year wholesale distribution contract with Costcutter, ending Costcutter’s more than 20-year relationship with Nisa.

“Through the creation of The Buyco we will have unrivalled purchasing power within the UK convenience sector” - Darcy Willson-Rymer

A new three-tier own-label range will also be launched, with an “extensive” fresh and chilled offer.

“We have been single-mindedly focused on creating maximum value for our members and it became wholly apparent that without access to the proportionate benefits of our own buying power this could not happen,” said CEO Darcy Willson-Rymer.

“Through the creation of The Buyco we will have unrivalled purchasing power within the UK convenience sector, meaning that we can purchase the best prices, promotions and range for our members.”

P&H CEO Chris Etherington added: “By divesting our retail operation to Costcutter, we can now focus all our energies on extending the delivery benefits already enjoyed by Mace, SuperShop and Your Store retailers to the wider Costcutter Supermarkets Group.”

Readers' comments (4)

  • This is the biggest shake up in the indie sector for years. I will be interested to hear from Costcutter operators about how they feel about this. Personally I think that they will leave the group in droves.
    It came as no surprise that Costcutter would eventually depart from Scunthorpe but I never saw this one coming.

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  • So this was going to be big surprise all I heard they was going to join morrisons or asda and they go and join p & h they are worser than booker and going 50/50 what a bad deal for us more profits for the shareholders on both sides not happy with this deal. So seasurfer1 you was saying Costcutter is buying p&h, spar etc and going to shake the market, don't think so they going 50/50 only fact. And nisa said no jobs are going no warehouse is closing they new Costcutter will leave one day only 35% of business they will lose and they just got £100million loan they will drop more prices and make delivery charges free they will get 35% business back in 2 years.

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  • Worrying....focus on distribution is what P&H wish to do. Words of advice to retailers is please check all your stock before putting your autograph on delivery note. New drivers which serve London area; which I believe now is Hemel distribution centre is an absolute shamble and drivers always short deliver and don't advise of missing products. The customer service at Hemel branch is worse than the customer services which banks have abroad. Rude, arrogant and just a waste of time. They can keep you on hold for more 30minutes before actually answering the call.... Just a jobsworth for us retailers. Have moved my business to Londis now and use other suppliers for chilled and frozen and NOT palmer and harvey Mclane ltd.

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  • having been through this situation over many years with the joining of two companies believe me it will end in one way always the stronger of the two will win<

    costcutter will be the dominent force, and i can see the demise of Mace Your store etc ,

    why have 4 facias and 4 own lables when you can one "costcutter"

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