With a new investor in place, Costcutter is steadily recruiting new retailers and eyeing some of the smaller competition. The understanding that Costcutter is looking to acquire East Anglian rival Redorange lends weight to the theory that as the influence of the multiples rises in the convenience sector, existing symbol operators will have to consolidate. Some analysts, including Scott Annan from convenience expert SCRG, believe this will leave as few as three main fascias by 2010 that can compete effectively. However sales figures mean these predictions could be premature, with the symbol sector appearing to be in rude health. Sales in the independent sector grew 8% for the 12 weeks to 17 June, according to TNS Worldpanel, driven by symbol stores and ahead of overall grocery's 6%. Sales through symbol stores were up 24% compared with just 2% at non-affiliated independents. There have also been new entrants into the symbol market. In June off-licence specialist Bargain Booze made its first foray into convenience with the launch of its new fascia Bargain Booze Select Convenience. There are currently 10 up and running in the north west and joint MD Matthew Hughes said he hoped to have 40 stores open by the end of the year. The company is backed by private equity investor ECI Partners, which has helped it drive a rapid expansion of its off-licence franchise, so similar growth in convenience would not be unexpected. More recently, wholesale group Parfetts unveiled the Local 4U fascia it hopes to offer independents. It now plans to roll out the fascia to eight more stores with a view to creating a successful symbol offer in the medium-term. So, while there remain challenges, the demise of the symbol sector may have been exaggerated.

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