Costcutter 2

Bestway has updated retailers on the future of the supply arrangement for Costcutter following confirmation by Nisa that it would not be supplying stores when the current contract expires on 31 December 2025.

In a letter to Costcutter retailers, seen by Convenience Store, Bestway Wholesale managing director Dawood Pervez said a “thorough market analysis” on the supply arrangement is being carried out.

“We understand how important this is for your business, and let me start by saying that we are committed to announcing our plans at the earliest practical opportunity. We appreciate your continued patience as we work through the final stages of this process.

“We have been conducting a thorough analysis of the market as part of an exhaustive process to ensure we deliver a supply partnership that is future-focused and tailored to your needs, creating the best possible offer for Costcutter retailers.”

Pervez outlined the aims of the new supply chain deal which include delivering an improved offer for Costcutter retailers; more efficient processes and better service levels; enhanced product availability, consistency, and responsiveness, and driving the growth of the Costcutter brand.

He said that Bestway would share more details with retailers “soon”. “We are excited about the opportunities ahead and remain fully focused on ensuring the best possible outcome for all our retailers. Thank you for your continued support, and we look forward to sharing more details with you soon.”

Costcutter stores have been supplied with Co-op products through the Nisa supply chain since 2018, with a five-year contract extension announced in December 2020 by Bestway following its acquisition of Costcutter that same month.

One Costcutter retailer, who did not wish to be named, expressed concern to Convenience Store over the future of the supply arrangements, stating that their customers trusted the current Co-op range, and a switch would cause “serious disruption” to their business.

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