The Co-op and Costcutter Supermarkets Group (CSG) have announced a new supplier agreement following the news that wholesale chain Palmer & Harvey has gone into administration.
Under the new deal, announced today (29 November), the Co-op will become the exclusive wholesale supplier to the 2,200 Costcutter, Mace, Simply Fresh, Supershop and kwiksave convenience stores across the CSG network from Spring 2018.
The deal will also provide the opportunity for CSG’s independent retailers to become Co-op franchisees.
The Co-op said it is also looking at practical short-term support for retailers affected by the P&H announcement until the formal agreement begins.
Chief executive of Costcutter Supermarkets Group, Darcy Willson-Rymer, said: “With P&H no longer able to supply our stores, we have activated our contingency plans that will see our retailers supported by the Co-op and other suppliers in the run up to our deal with the Co-op.”
Chief executive of Co-op Food Jo Whitfield, said: “We are operating in a dynamic market environment and this deal, coming shortly after our Nisa announcement, shows how we are positively responding to the changes occurring within the sector.
Whitfield said the Co-op’s food business is going from strength to strength, having recently reported its 14th consecutive quarter of like-for-like sales growth.
“While our deal with Costcutter will start formally in Spring 2018 we are looking at practical ways we can support independent retailers during this busy trading period, in light of the news concerning P&H,” she said.
“It is essential that we maintain a strong independent retail sector and the Co-op is committed to playing its part, along with others in the industry, in ensuring this occurs.”
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