Independent convenience operator Costcutter and distribution giant Palmer & Harvey have inked a deal to create the UK’s second-largest convenience chain and form a buying joint venture.
The deal, announced yesterday (13 March), will see Costcutter takeover 800 Mace, Supershop and Your Store outlets as P&H quits retailing to focus on its distribution business. The pair will also form a joint buying group that spends around GBP5bn annually.
Commenting on the move, Costcutter CEO Darcy Willson-Rymer described the news as “the biggest shake-up of the GBP34bn convenience sector in years”.
Willson-Rymer insisted that through the buying organisation – called The Buyco – the enlarged group would have “unprecedented buying power” that would allow it to compete with the UK’s supermarkets on price.
Costcutter is made up of independent retailers that pay a fee to gain access to the firm’s marketing and purchasing capabilities.
“This will ensure we have a thriving independent sector alongside the supermarkets. But it is also about consumer trends: people want to shop locally,” Willson-Rymer said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData