Co-op franchise
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Costcutter has grown sales at one of its company-owned stores by up to 70% following its conversion to a Co-op franchise.

The unknown location converted to the Co-op franchise model several months ago as a Costcutter Group trial.

Costcutter CEO Darcy Willson-Rymer said the trial had been “very successful” and that it plans to convert several other company-owned Costcutter stores to Co-op franchises before rolling out Co-op franchise opportunities to Costcutter retailers, including those that have already expressed an interest in the model. Willson-Rymer said the further trials would make sure the model works well before offering it to its retailers

It is understood that Costcutter has less than 20 company-owned store sites.

Under the Costcutter-Co-op supply deal, the Co-op has granted Costcutter the ability to act as a “master franchisee,” overseeing and managing Costcutter stores that make the switch.

Costcutter had expected a sales uplift of 30-40% but when the stats came back it revealed 60-70% sales growth at the trial site.

Source: Better Retailing

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