Co-op and Costcutter sign supply deal after Palmer & Harvey collapse

Helen Cahill
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The Co-op has announced that it has signed a deal to become the exclusive wholesale supplier of the Costcutter Supermarkets Group (CSG), following the collapse of Palmer & Harvey (P&H).

CSG operates the 2,200 Costcutter, Mace, Simply Fresh, Supershop and kwiksave convenience stores. The deal will apply from Spring 2018.

Read more: Palmer & Harvey collapses into administration despite rescue talks

The deal was done after P&H fell into administration this week, resulting in supply chain disruption and the loss of thousands of jobs at the company.

Jo Whitfield, Chief Executive of Co-op Food said: “We are operating in a dynamic market environment and this deal, coming shortly after our Nisa announcement, shows how we are positively responding to the changes occurring within the sector.

“Whilst our deal with Costcutter will start formally in Spring 2018 we are looking at practical ways we can support independent retailers during this busy trading period, in light of the news concerning P&H. It is essential that we maintain a strong independent retail sector and the Co-op is committed to playing its part, along with others in the industry, in ensuring this occurs.”

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