Appleby Westward Group has announced its biggest co-investment fund yet as it ramps up efforts to attract new retailers to the fascia and help existing members grow.

The South West Spar wholesaler has pledged to spend £2m this year on matching retailer investments in new site openings and extensions. Retailers must commit to buy from AWG for five years in exchange.

“We’ve invested more than £100,000 in some sites,” said MD Mark McCammond. “A lot of these retailers would struggle to develop their businesses without co-investment.”

AWG has also invested £500,000 in lowering the price of 36 big convenience brands such as Coca-Cola, Red Bull, Nescafé and Mars. “The lowered price lets the retailer sell a standard Mars Bar for 56p - as of last Friday, it was 61p at Tesco Express,” McCammond said.

AWG has already seen volume sales on the 36 lines rise 21% since the initiative launched in January and is looking to extend the investment to more lines in the second half of 2012. It wants to grow its estate from 280 to 300 retailers by the end of the year.

Topics