JOBS are under threat as the new owners of a York-headquartered supermarket brand unveil future plans for the business.
Bestway Wholesale, which has bought York-based Costcutter Supermarkets Group (CSG) for an undisclosed sum, has announced plans to restructure CSG in a bid to integrate the two businesses.
The new owners, the UK’s largest independent wholesaler, have not confirmed the number of redundancies but said they want to 'minimise job losses'.
CSG employs about 500 people, and is headquartered in Dunnington, near York.
It has supported independent retailers for more than 30 years, and has more than 1,550 stores nationwide, with brands including Costcutter, Mace, Supershop and Simply Fresh.
Under the acquisition, CSG becomes part of Bestway Wholesale’s retail division and will continue to operate as normal.
Bestway Wholesale completed the acquisition of Costcutter from the convenience store chain's owner, Bibby Line Group, in February after securing approval from the Financial Conduct Authority.
About 1,500 stores branded under Costcutter, Mace, Supershop, Kwiksave, and Simply Fresh, will join Bestway Wholesale’s current brands; Bargain Booze, Best-One, Wine Rack, Select Convenience and Central Convenience.
Bestway Wholesale managing director, Dawood Pervez, said the two businesses would be integrated to offer extra value and streamline efficiencies within the combined business.
“We want to ensure that all operating divisions are focused on delivering value for our customers, and on elements that matter most to them in order to continue to deliver service excellence and accelerate growth.
“We all operate in a highly competitive and dynamic market and by aligning CSG’s structure and process within our broader business, this helps us prepare for the challenges and opportunities ahead.
“We will be looking to minimise job losses within this process, which will be unrolled over the weeks ahead. We recognise that these changes will be difficult for colleagues and we will be doing everything we can to fully support those affected."
CEO of Costcutter, Darcy Willson-Rymer, pictured centre celebrating the business's 30th anniversary with colleagues at the Dunnington head office in 2016.
Darcy Willson-Rymer, Costcutter's chief executive officer of nine years, has stepped down.
When the deal was announced in December, he said it could not have come at a better time for CSG's retailers.
"Joining a business of Bestway Wholesale’s size, scale, and expertise will unlock new opportunities to help CSG’s independent retailers thrive.
“Right now, that means three things: helping our retailers navigate the challenges of the Covid pandemic, continuing to invest in the BDM support our retailers receive and the retailer sales growth we are able to deliver through Shopper First; and introducing new and innovative ways to engage shoppers and deliver the very best retail offer available.
“While I will not be part of Costcutter’s journey moving forward, it is exciting to see the fresh opportunities this acquisition will bring.”
The acquisition takes Bestway Wholesale’s annual turnover to almost £3 billion, alongside a symbol, franchise, and company store retail estate of more than 3,795 stores in the UK, (including 2,682 fascia and 195 company owned).
Following news of the acquisition in December, Bestway Wholesale announced that the current supply agreement that CSG retailers have with the Co-op, has been extended until 2026.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here