• Sales climb 4% year-on-year
  • Revises Kwiksave store openings target up
Costcutter has launched a number of new formats this year

Costcutter has launched a number of new formats this year

UK convenience retailer Costcutter has booked an increase in first-half sales and set a new target of Kwiksave store openings for the end of the year.

The group recorded a 4% year-on-year increase in sales in the six months to the end of June, boosted by the recruitment of more independent retailers and the roll-out of new formats.

Costcutter has launched a number of formats this year including the upmarket myCostcutter banner, the trial of a Rhythm & Booze off-license franchise and a new Kwiksave fascia

The retailer said 112 new retailers joined the group in the first six months of 2012, with a further 41 set to join "imminently". It also revised its target for new Kwiksave stores upward.

"We opened the first Kwiksave store in May 2012 and in September we will open our sixth store," said Sir Michael Bibby, managing director of parent Bibby Line Group. "The target was to have 12 stores by the end of the year, however the new format store is proving so popular we are on course to open 20 stores by Christmas."

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COSTCUTTER SUPERMARKETS GROUP CONTINUES TO GROW WITH STRONG FINANCIAL PERFORMANCE AND RETAILER RECRUITMENT

Costcutter Supermarkets Group has today (21st August 2012) announced continued growth with a strong financial performance for the first six months of the year and excellent retailer recruitment.

In the first six months of 2012 Costcutter Supermarkets Group has posted a 4% year-on-year increase in sales. In addition the award winning symbol group has maintained its growth in retailer recruitment, adding another 112 new accounts from January to July 2012, with a further 41 pending accounts which will begin trading imminently. Supply deals with several large groups are also due to commence in the coming weeks, along with a series of smaller acquisition targets identified to boost the company owned store portfolio.

Nick Ivel, Chief Executive of Costcutter Supermarkets Group, said: "Despite continuing to operate in a tough economy Costcutter Supermarkets Group has continued its year-on-year growth. These latest performance figures underline the excellent work being done by our retailers and everyone within the business."

He added: "Retailer recruitment is buoyant. We are seeing more and more independent retailers joining a symbol group for the first time and our recruitment of retailers from our rivals is also increasing."

The launch of Costcutter Supermarkets Group's three fascia strategy has proved enormously successful with store openings well ahead of target. The soon to launch Rhythm & Booze franchise, which is currently being trialled, will set the standard for independent off licenses and draw on Costcutter Supermarkets Group's vast knowledge within the symbol group sector.

Sir Michael Bibby, Bt., Managing Director of Bibby Line Group, commented: "We opened the first kwiksave store in May 2012 and in September we will open our sixth store. The target was to have 12 stores by the end of the year, however the new format store is proving so popular we are on course to open 20 stores by Christmas. "

Costcutter Supermarkets Group is investing heavily in its retailer IT systems with Kevin Widdrington, who recently returned to the business as IT Director, responsible for launching a completely re-written version of the business's in-house CPoS system. He is also tasked with launching the group's own Order Capture System, which will be unveiled in April 2013.

Sir Michael Bibby, Bt, added: "Costcutter Supermarkets Group continues to perform extremely well and we remain committed to providing retailers with market-leading innovations to help independent retailers develop their stores into highly profitable businesses."

Costcutter Supermarkets Group's strong performance follows that of parent company Bibby Line Group which grew revenues by 12.1 per cent to £1,295m (2010: £1,156m) in the year to 31 December 2011. The diversified group - which has a wide portfolio of interests including shipping, marine services, logistics, financial services and retail - reported record operating profits of £63.8 million (2010: £40.8 million).

 

Original source: Costcutter