The Co-op Group is preparing to supply its own-brand goods for sale in Costcutter stores.
The Group made a deal with the convenience retail group last year which sees it become its exclusive wholesale supplier. This fills the gap left by the collapse of Costcutter’s previous supplier, wholesale giant Palmer and Harvey.
The first Co-op own-brand lines will be available in stores from 18 July, with information at tills to explain to shoppers that the stores now stock Co-op products. 800 of the own-brand products will appear on shelf over the next few months, followed by 1,200 further products early next year.
There is also the opportunity for Costcutter members to become Co-op franchise stores. This concept is currently being piloted in a company-owned store in Yorkshire and will be tested further in additional stores over the coming months before independent retailers can take on the franchise offer.
The move follows the rollout of Co-op own-brand goods to stores in the Nisa convenience chain, which the Group purchased earlier this year.
A spokesman for the Group said: “We’ve tested franchising previously and have used our learnings to start developing a model that can be used with retailers in Costcutter and Nisa. It is too early to comment further.”
He added: “We’ve been pleased with the way Co-op-branded products have landed through Nisa partners’ stores. For Costcutter, Co-op brand starts to land next week.”
Meanwhile, it has been reported in the press that the Co-op Group had a £15m takeover bid for Costcutter rejected by its owner, Costcutter Supermarkets Group.
Both the Co-op Group and Costcutter declined to comment on the reports.
