Bestway Wholesale has agreed a two-and-a-half year extension to the Co-op’s supply agreement for Costcutter.
Bestway confirmed on Friday it was buying the symbol group from Bibby Line Group for an undisclosed fee and today said the contract extension would provide certainty to Costcutter retailers. It means Co-op will continue to supply Costcutter stores, with branded and own-label products via its Nisa supply chain until 2026.
“We know the Co-op/Nisa supply contract is important to our CSG retailers, and we are delighted to announce this extension, which will give additional reassurance that there is no operational change once CSG becomes part of the Bestway family,” said Bestway Wholesale MD Dawood Pervez.
“It means Costcutter retailers will continue to benefit from access to the same range they have today, including a fresh offer that is right for today’s convenience shopper, as well as the Co-op’s own-brand range”.
He continued: “Today’s market is all about adapting with agility to ensure independent retailers can maintain the momentum gained over the past year, and we will be working collaboratively to understand how we can drive further value-add and help convert lifeline shoppers into lifelong shoppers.
“But it is an important first step for us that we reassure our retailers and they see we have their best interests at heart. We know the existing product range works well for CSG through its current supply agreement with Co-op/Nisa and have taken steps to ensure our retailers can have trust and confidence in the fact that their product range is not about to change.
“In the months ahead, Bestway and Costcutter must surely be the home of choice for independent retailers looking for the best opportunity for their business.”
Costcutter retail director Mike Hollis added: “It is excellent news for our retailers that the Co-op/Nisa contract will continue to run for the next five years. It allows us to offer an exceptional range with over 13,000 lines, all price-checked weekly by CSG to remain competitive. The award-winning Co-op own-brand range continues to attract shoppers and increased basket spend while providing great margin.
“For retailers we can now offer the perfect combination to drive their sales and growth: the scale of Bestway, the industry-leading retail offer and support provided by CSG, and Co-op/Nisa’s range and supply. This positions CSG as the ideal symbol group partner for any independent retailer.”
Bestway’s takeover of Costcutter is dependent on clearance from the Financial Conduct Authority and is expected to complete in the first quarter of 2021.