Trading and marketing director Angela Barber says: "We need to be acutely aware of the promotional activity of the multiples ­ anything we put together has to be sharper."
Barber says Costcutter is well able to rise to the challenge posed by the multiples by waging a fierce promotional war.
"We are working with manufacturers on instore theatre and our Beat This promotional strategy is going well.
"It helps us enormously if suppliers have prepared materials such as PoS signage and merchandising stands in advance of promotions they want to run. But ultimately it is down to the trading managers to make the best of things."
Barber says being a member of buying group Nisa-Today's lightens the load as the group negotiates listings and supply deals, leaving the trading team to focus on merchandising, sales and promotions.
In addition to these activities, Costcutter is stepping up its terrestrial TV campaign in the run-up to Christmas, after making its TV debut in September.
"We are extending our West Country TV campaign to Northern Ireland, Scotland, Yorkshire and Tyne Tees to support Costcutter retailers in those areas as well as running ads on satellite TV," says Barber. The campaign will run back-to-back in two bursts from November 20, each lasting a fortnight.