Costcutter in bid to improve delivery timings

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Costcutter Supermarkets Group is to increase its minimum order size and start charging stores £55 a time if they fail to use their delivery slots, in a bid to improve its on-time delivery service to retailers.

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The minimum order quantity for ambient products will increase from 80 cases per order to 120 cases per order.

Mike Hollis, retailer director at Costcutter, said: “We are constantly looking for ways to improve the delivery service our retailers receive.

“Retailer feedback has been consistent about the need to improve the accuracy and consistency of delivery on-time windows.

“Having worked on the right solution for some time, we consulted retailers during our January 2020 retailer roadshows, where the principles of a solution were discussed and received enthusiastic support.

“By both charging retailers who do not use their delivery slots and maximising the efficiency of existing deliveries by increasing the ambient minimum order quantity, we will be able to settle down into a regular delivery pattern which in time will provide our supply partner with a greater opportunity of operating to their delivery time windows.

“With the vast majority of Costcutter’s 1,550 retailers already maximising both their orders and delivery slots, the changes will improve the consistency of service with no cost impact for the majority of retailers.”

At the same time, in a move aimed at “supporting growth categories”, the group says it will no longer pay any rebate for spirits purchases.

But spirits purchases will still count towards a retailer’s average weekly spend calculation, which still helps towards their maximum rebate of up to 6%.

To qualify for their rebates, Costcutter group retailers will also need to correctly display key deal ends.

Costcutter is also trialling an enhanced fresh rebate of an additional 1% in Northern Ireland that will be considered for wider national roll-out.

Hollis said: “This small change in our rebates scheme forms part of a wider initiative to focus on growth categories, particularly fresh foods.

“Removing rebates on spirits is, like tobacco, part of our aim to place less emphasis on declining and low-growth categories.

“In addition, when every Costcutter store is displaying the correct deal ends, we will be able to reinforce the Costcutter brand perception of price and value with shoppers.

“As we enter a recessionary period, ensuring all shoppers receive this same brand experience of price and value will be even more important than before.”

Meanwhile, the group is bringing in a new £6-a-week recycling charge – although retailers do have the choice to opt out.

Said Hollis: “We know the vast majority of our retailers share our ambition of reducing the carbon footprint of all our businesses.

“So we can provide the best possible recycling service, we need to introduce this small levy, which is a common charge across the symbol sector.

“By allowing retailers to opt out, we are ensuring this is a competitively priced service.”

The changes come into effect from 20 July, apart from the changes to rebates, which come into effect from 3 August.