Costcutter acquired by Bestway Wholesale
Bestway Wholesale has acquired Costcutter Supermarkets Group (CSG) – taking the wholesale business’s annual turnover to almost £3 billion.
The acquisition from Bibby Line Group will complete on FCA approval and extends Bestway’s symbol, franchise and company store retail estate to more than 3,795 stores in the UK.
CSG’s financial performance has improved in the past two years, with sales during the 12 months to 31 December 2019 rising by 10% to £426 million, with numbers continuing to rise in 2020 as consumers turned to the convenience channel in light of the Covid-19 pandemic.
Bestway Wholesale Managing Director Dawood Pervez reinforced the business’s commitment to retailer and shoppers, while also promising CSG retailers the same benefits, features and services they currently enjoy.
“Costcutter is a great brand with a long heritage and a history of success alongside industry-leading and loyal retailers, with some of the best in-store execution in the business,” says Pervez.
“As part of Bestway Wholesale, the team at Costcutter will be able to build upon the amazing results they have been achieving in partnership with their retailers, helping them to innovate and adapt to an ever-changing market in order to grow their businesses and sales.
“We’re keen to reassure CSG’s retailers that it is ‘business as usual’ and they will see no change in how they currently work with CSG. The existing CSG supply contract with Co-op/Nisa is not affected by the acquisition and Nisa will continue to supply CSG stores. The 2,000 Co-op SKU range has proven to be an important driver of footfall and sales, as well as providing CSG retailers with an exceptional range of fresh produce.
“This means that Costcutter’ retailers will continue to benefit from access to the same range they have today, includinga fresh offer that is right for today’s convenience shopper, as well as the Co-op’s Own Brand range.
“CSG has a series of virtual roadshows planned for January and I’m looking forward to meeting as many retailers as possible, and having the opportunity to discuss their views, their needs, and explore ideas for the future.
“Furthermore, we’re looking forward to welcoming CSG’s team of 500 employees into the Bestway family.”
Under the terms of the acquisition, CSG and its brands will become part of Bestway Wholesale’s retail division and continue to operate as normal. Approximately 1,500 stores branded under Costcutter, Mace, Supershop, Kwiksave, and Simply Fresh, along with 20 Costcutter and 4 Co-op franchises, will join Bestway Wholesale’s retail estate, including; Bargain Booze, Best-One, Wine Rack, Select Convenience and Central Convenience.Bestway Wholesale Costcutter Dawood Pervez