Costcutter and P&H have told retailers the problems arising from the Nisa switchover in July will be resolved within six weeks - but it could be too late to convince some of the symbol group’s most prominent retailers to stay.
The Grocer understands Paul Cheema, owner of Malcolm’s Store in Coventry and chairman of the Costcutter Retail forum, is considering his future with the group. When asked about his plans this week, Cheema declined to comment, but he is believed to be considering his options, including switching to a rival symbol operator, developing a new symbol or remaining with Costcutter.
This week, Costcutter and P&H held five roadshows for retailers, to address their concerns and explain how they intend to reduce out-of-stocks, late orders and out of date products.
Retailers who attended the meeting christened the roadshows ‘Cobra’ - a reference to the government’s Cobra crisis response taskforce - and expressed disappointment at a lack of concrete answers, but said they were assured “significant progress will be achieved and targets will be met” within the next six weeks.
“The recent retailer roadshows gave us the opportunity to talk directly with our members and to give them a detailed update on our plans,” explained Costcutter CEO Darcy Willson-Rymer, “We have implemented a number of changes, including the opening of two new depots and adjustments to the range and promotional programme, which have already delivered improvements to our members. We are aware our members are still facing some issues. However we are now seeing improvements across the network.”
Not all feedback from retailers has been negative. One retailer commented on The Grocer website this week: “Nisa was OK in its day but since moving to Costcutter and its new buy and supply with P&H our profits have gone up 3%. I am told there is more to come. Demand is higher in Costcutter now and there are shortages. If availability can be improved quickly everybody will be happy.”
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