Costcutter’s secret Co-op franchise store trial grew sales by 70%

July 6, 2018

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.

Related: Costcutter founder Colin Graves to advise Co-op on wholesale and franchising

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

Costcutter founder Colin Graves to advise Co-op on wholesale and franchising

June 10, 2018

Costcutter founder Colin Graves has joined the Co-op in an advisory role helping it shape its future wholesale and franchise ambitions.

Convenience veteran Graves, who is also currently chairman of the England and Wales Cricket Board, is set to chair the Co-op’s new Wholesale and Franchise Advisory Board. He will be joined on the board by Co-op Group CEO Steve Murrells, Co-op Retail CEO Jo Whitfield, newly appointed Nisa CEO Ken Towle, and Co-op chairman Allan Leighton.

The creation of the advisory board follows the Co-op’s £137.5m takeover of Nisa, which completed last month, and the commencement of its supply agreement with Graves’ former business Costcutter.

Related: Costcutter’s secret Co-op franchise store trial grew sales by 70%

In a note to Co-op staff, seen by The Grocer, Murrells said wholesaling and franchising were huge opportunities for its food business.

“We’ve made a fantastic start by buying Nisa and with the new contract to supply Costcutter, both of which will grow Co-op and retail partner sales, help us buy better, and get our brand in front of many more communities,” said Murrells.

“But we know there are more exciting opportunities out there to develop these relationships and build new ones in both wholesaling and franchising.”

He described Graves as “a bit of a convenience retail legend having set up Costcutter, which he chaired for nearly 30 years before selling it to its current owners. He’s highly respected in the sector, and having somebody with us who both knows and is known in independent retail will be a big help.”

Source: The Grocer