Costcutter will decide by the end of the year whether it is to extend its decade-long distribution deal with Nisa-Today's.
The contract ends in 2014 and the pair have been in talks over an extension since the summer.
Costcutter MD Nick Ivel told The Grocer that his "preferred option" was to extend the contract. But he said the retailer was looking at several alternatives.
"We have to have an answer by the end of the year," he said. "And if the preferred option doesn't come out, we will need an alternative. But you can be assured that whatever decision we come to, we will have dotted every 'i' and crossed every 't' to have reached that."
Costcutter had four options, he said. Aside from extending the contract, Costcutter could set up its own distribution, sign up with another provider or buy a third party, he said. But there was "no way" Ivel would rule out continuing to work with Nisa-Today's.
"Nisa-Today's and Costcutter are a strong force together and with so many new competitors coming into the market, those already in the market have to work together and support our retailers," he said, adding that Costcutter would honour its contract until 2014 whether or not an extension was agreed.
Ivel said Costcutter was currently in the middle of a review of the business and was looking at the possibility of introducing new fascias.
There were three distinct tiers in the convenience market premium, mid-market and low-end and Ivel said he wanted to make sure Costcutter could operate in each market. An independent survey was carried out with Costcutter retailers and had revealed that the business was "standing well" in convenience and retailers "wanted to stay with what Costcutter had to offer".
He also revealed that sales were up around 2% year-on-year and would increase by around 5% next year to break through the £650m mark. Plans are also in place to mark the retailer's 25th anniversary, in September this year.
The contract ends in 2014 and the pair have been in talks over an extension since the summer.
Costcutter MD Nick Ivel told The Grocer that his "preferred option" was to extend the contract. But he said the retailer was looking at several alternatives.
"We have to have an answer by the end of the year," he said. "And if the preferred option doesn't come out, we will need an alternative. But you can be assured that whatever decision we come to, we will have dotted every 'i' and crossed every 't' to have reached that."
Costcutter had four options, he said. Aside from extending the contract, Costcutter could set up its own distribution, sign up with another provider or buy a third party, he said. But there was "no way" Ivel would rule out continuing to work with Nisa-Today's.
"Nisa-Today's and Costcutter are a strong force together and with so many new competitors coming into the market, those already in the market have to work together and support our retailers," he said, adding that Costcutter would honour its contract until 2014 whether or not an extension was agreed.
Ivel said Costcutter was currently in the middle of a review of the business and was looking at the possibility of introducing new fascias.
There were three distinct tiers in the convenience market premium, mid-market and low-end and Ivel said he wanted to make sure Costcutter could operate in each market. An independent survey was carried out with Costcutter retailers and had revealed that the business was "standing well" in convenience and retailers "wanted to stay with what Costcutter had to offer".
He also revealed that sales were up around 2% year-on-year and would increase by around 5% next year to break through the £650m mark. Plans are also in place to mark the retailer's 25th anniversary, in September this year.
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