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Costcutter Supermarkets Group has officially launched its offer to independent retailers interested in taking on a Co-op franchise.

The package, which operates exclusively through Costcutter for retailers with 10 stores or fewer, was unveiled at the National Franchise Exhibition in Birmingham earlier this month (October).

 
Seven franchises are already up and running through the agreement, including three company-owned stores, and Costcutter says the outlets are seeing sales growth of more than 50%.

Benefits for retailers include the creation of a store layout plan, category space allocation and range tailored to their store’s catchment area.

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They also get ongoing support and training in how to implement staff training, store processes and retail routines.

Stores need to have weekly sales of £20,000, excluding VAT and services such as Lotto, Paypoint and Post Office. They also need a sales area of more than 2,000sq ft and back-of-house space of more than 800sq ft.

Martin Rogers, head of new channels at the Co-op, said: “This is a significant milestone in our franchise ambition and we’re looking for the right retailers in the right locations to share in our success and help widen the reach of Co-op products. We now have the capability to deliver franchising at scale.”

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Southern Co-op already runs a similar franchise operation, but these stores operate under the Welcome fascia rather than Co-op.

Costcutter’s exclusivity does not extend to university student unions or existing Nisa retailers interested in a Co-op franchise. They would need to go direct to the Co-op.

By David Shrimpton

Source: Talking Retail

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