Costcutter is “bang on schedule” with its preparations for moving its buy and supply from Nisa to Palmer & Harvey, CEO Darcy Willson-Rymer has revealed.
Speaking at the Costcutter Expo 2013 in Manchester this week, Willson-Rymer said the retailer was halfway through the process - which as well as work on category management, IT and ranges also includes launching its new three-tier own-label range called Independent.
As many as 300 lines in the Independent range will launch before Christmas in Mace, as well as Costcutters that will have transferred distribution to P& H by then, he revealed. Products will launch on a category-by-category basis, starting with dairy. It aims to have 750 lines available by 1 July next year when distribution fully switches over to P&H. The range will eventually have 1,000 lines.
Willson-Rymer said 27 company-owned Costcutters were already receiving deliveries via P&H as part of a trial. Problems had been “ironed out” and next month the trial would be extended to seven franchisee stores.
Feedback from retailers on the P&H deal had been “overwhelmingly positive”, Willson-Rymer said. Costcutter had added 50 new members since announcing the deal in March and he could “literally count on one hand” members who had chosen to leave.
The tie-up also had the backing of suppliers, he added. “The key message from them is that they recognise the sector has been under-serviced and under-invested by them in the past.”
Also speaking at the event, P&H commercial director Martyn Ward, who is also CEO of The Buyco - the new buying group formed by P&H and Costcutter - said The Buyco had already met 45 to 50 suppliers to discuss plans. Suppliers welcomed the tie-up, he added.
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