Bestway Wholesale has announced a two and a half year extension to the current supply agreement by the Co-op, giving a further five years to run on the agreement originally negotiated by Costcutter Supermarkets Group (CSG) in mid-2017.
Further to last Friday’s announcement (December 18), that an acquisition had been agreed between Bestway Wholesale and CSG (under which CSG and its brands will sit within the Bestway Wholesale’ retail division), the extension is intended to show retailers that Bestway is committed to ensuring that all the benefits, services, and features they currently enjoy will remain unchanged.
Under the terms of the existing CSG supply contract with Co-op/Nisa, Nisa will continue to supply CSG stores.
According to Bestway Wholesale’s managing director, Dawood Pervez, the extension agreed with the Co-op is a further illustration of how Bestway intends to support its retailers and explore collaborative opportunities to benefit all parties:
“We know that the Co-op/Nisa supply contract is important to our CSG retailers, and we are delighted to announce this extension, which will give additional reassurance that there is no operational change once CSG becomes part of the Bestway’ family.
“It means that Costcutter retailers will continue to benefit from access to the same range they have today, including a fresh offer that is right for today’s convenience shopper, as well as the Co-op’s Own Brand range”.
According to Pervez, there are some exciting opportunities ahead that will stem from the collaborative partnership between Bestway and the Co-op:
“Today’s market is all about adapting with agility to ensure independent retailers can maintain the momentum gained over the past year, and we will be working collaboratively to understand how we can drive further value-add and help convert lifeline shoppers into lifelong shoppers.
“But it is important first step for us that we reassure our retailers and they see that we have their best interests at heart. We know that the existing product range works well for CSG through its current supply agreement with Co-op/Nisa and have taken steps to ensure that our retailers can have trust and confidence in the fact that their product range is not about to change.
“In the months ahead, Bestway and CSG must surely be the home of choice for independent retailers looking for the best opportunity and best value for their business.”
Mike Hollis retail director for CSG said: “It is excellent news for our retailers that the Co-op/Nisa contract will continue to run for the next five years. It allows us to offer an exceptional range with over 13,000 lines, all price checked weekly by CSG to remain competitive. The award-winning Co-op Own Brand range continues to attract shoppers and increased basket spend while providing great margin.
“For retailers we can now offer the perfect combination to drive their sales and growth: the scale of Bestway, the industry-leading retail offer and support provided by CSG, and Co-op/Nisa’s range and supply. This positions CSG as the ideal Symbol Group partner for any independent retailer.”
The acquisition of CSG by Bestway Wholesale will complete upon FCA approval. As one business, it will reflect a symbol, franchise, and corporate retail estate of more than 3,795 stores in the UK, (including 2,682 fascia and 195 company owned).