A YORK-based supermarket chain has signed a ten-year distribution deal.

Colin Graves, founder and chairman of Costcutter, sealed the deal with Nisa-Today's at the Lord's Cricket Ground in Middlesex to reflect Mr Graves love of cricket and his position as the chief executive of Yorkshire County Cricket Club.

The contract, which commits the York-based group to using Nisa-Today's Central Distribution Service for the next decade, will take the relationship between the two businesses to 27 years.

Costcutter will also use Nisa-Today's Premier Service, an exclusive six-day-a-week delivery service of almost 3,000 frozen and chilled products, which will be further strengthened later this year with the opening of a massive, purpose-built second-warehouse in Harlow, Essex, in October.

It is hoped the deal will increase Costcutter's ability to compete with the major supermarket chains.

Costcutter now has a turnover of £459 million, a total of 1,324 stores, and business has grown by ten per cent year on year.

Mr Graves said: "I believe there is huge potential in the independent retail sector and our successful year is evidence of this. Over the last six months, Costcutter and Nisa-Today's have proved that they can not only live and survive against but also operate extremely successfully in the wake of multiple pressures in the convenience arena."

Updated: 09:51 Tuesday, June 22, 2004