New partnership set to transform UK convenience sector

York-based Costcutter Supermarkets Group and Palmer & Harvey have announced the launch of a new joint venture company that will transform the convenience sector in the UK through its £5 billion negotiating and buying power.

To be known as The Buyco, the new company will be unique within the convenience sector, providing Costcutter Supermarkets Group with access to the largest volume buying power in the sector, and a resulting range of benefits for its members.

As a joint venture business which will be 50% owned by both companies, The Buyco is being set up to allow Costcutter Supermarkets Group to meet the needs of its independent retailers and all of P&H’s existing independent retailers.

Coinciding with the creation of The Buyco, Palmer & Harvey will be moving away from direct management of symbol group convenience retailing to focus on its wholesale distribution strengths.

The Mace, Supershop and Your Store brands, operations and 800 stores will join the Costcutter Supermarket Group family of brands which includes the 1,600 plus Costcutter and kwiksave stores. The transfer will come into effect on April 7 2013.

In addition, Costcutter has signed a new eight-year wholesale distribution contract with Palmer & Harvey.

Darcy Willson-Rymer, CEO of Costcutter Supermarkets Group, said: “We have been single-mindedly focused on creating maximum value for our members and it became wholly apparent that without access to the proportionate benefits of our own buying power this could not happen.

“Through the creation of The Buyco with Palmer & Harvey, we will have unrivalled purchasing power within the UK convenience sector meaning that we can ensure the best prices, promotions and range for our members.”