Talking Retail Grocery and product news for independent retailers
Bestway said on Friday it would be buying Costcutter Supermarkets Group (CSG) from current owner Bibby Line, subject to approval from the Financial Conduct Authority (FCA).
The wholesaler hopes the extension will come as welcome news to Costcutter retailers, giving them added reassurance that Bestway is committed to ensuring all the benefits they currently enjoy will remain unchanged.
Under the terms of the existing CSG supply contract with the Co-op and delivered wholesaler Nisa, Nisa will continue to supply CSG stores.
This includes supplying the 2,000-SKU Co-op own-brand range, as well as fresh produce.
Bestway Wholesale managing director Dawood Pervez said: “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.
“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 added: “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 important first step for us that we reassure our retailers and they see that we have their best interests at heart.”
Mike Hollis, retail director at CSG, said the contract extension was “excellent news for our retailers”.
Once approved by the FCA, the acquisition will create a symbol, franchise and company-owned retail estate of more than 3,795 stores across the UK.
