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Co-op to supply Costcutter after Palmer & Harvey collapse

The Co-op has entered into an agreement that will see it become the exclusive wholesale supplier to Costcutter Supermarket Group and its 2,200 Costcutter, Mace, Simply… View Article

FOOD & DRINK

Co-op to supply Costcutter after Palmer & Harvey collapse

The Co-op has entered into an agreement that will see it become the exclusive wholesale supplier to Costcutter Supermarket Group and its 2,200 Costcutter, Mace, Simply Fresh, Supershop and Kwiksave convenience stores.

The move follows news of the collapse of Costcutter’s supplier Palmer & Harvey earlier this week.

The Co-op has also confirmed that it is looking at practical short-term ways it can support independent retailers within the Costcutter group until the formal agreement begins in spring 2018.

Jo Whitfield, chief executive of Co-op Food, 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.

“Whilst 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. 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.”

The deal will also provide the opportunity for Costcutter’s independent retailers to become Co-op franchisees.

 

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