Q&A: Does Costcutter Franchise in the UK?

As an established convenience store on the UK high street, Costcutter draws in a large number of shoppers. So, it’s not surprising many savvy entrepreneurs are interested in investing in the brand. Here, we find out whether there are any Costcutter franchise opportunities and how you can get involved.

You might be surprised to know that almost one in five Brits make a trip to their local convenience store every single day. As consumer habits change, shoppers are making more frequent visits to small stores rather than opting for the big weekly shop.

Offering everyday essentials – and a few extra bits and pieces – local convenience stores are the ideal destination for shoppers with a busy lifestyle. And Costcutter is one of the sector’s household names. It’s part of Costcutter Supermarkets Group, one of the leading symbol groups in the UK.

Does Costcutter franchise?

Yes. It’s part of Costcutter Supermarkets Group, one of the biggest symbol groups in the UK. To find out more about the Costcutter franchise and how you can join it as a franchisee, head to its website. Once you’re there, you’ll be able to fill in an enquiry form or call the franchise directly.

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History of Costcutter

Costcutter Supermarkets Group was founded in the UK in 1986 as a small, family-owned business. In just 30 years it has grown substantially, and the number of stores is still on the rise. It was bought by family business Bibby Line Group in 2011, which shares the same forward-thinking mentality and values. It is managed from York, where the group’s headquarters are based.

Starting a Costcutter franchise unit

Costcutter Supermarkets Group is a symbol group, a structure that acts as a supplier to independent convenience stores operating under its brand name. Unlike standard franchises, they expand by selling their services to pre-existing stores, rather than developing new shops.

There are currently around 2,000 Costcutter shops in the UK, Ireland and Poland. Many of its UK locations were originally Spars but they changed to Costcutters because of the cheaper fees. The business is keen to expand its award-winning portfolio of supermarkets and convenience stores, as it has a brand for every type of retailer and outlet.

The Costcutter Supermarkets Group has an award-winning portfolio, so investors benefit from a varied product range, promotions and a choice of five well-known brands. They are: Mace, Simply Fresh, SuperShop, kwiksave and, of course, Costcutter. This makes it possible to deliver a cost-effective alternative to the discounters. Investors should make their decision based on their customer profile, store size, available territories and business goals.

Costcutter and Co-op

In recent years, Co-op has become the exclusive wholesale supplier for the supermarket chain. Costcutter was keen to work with the retail giant because of its positive track record and experience. It also has the ideal range and delivery service to support convenience retailing. Through the deal, Costcutter benefits from the larger company’s expertise whilst retaining its independence.

Co-op has introduced a franchise programme, welcoming independent retailers with at least 2,800 square feet of space and weekly sales of £20,000. At the moment, a number of independent Costcutter and Nisa retailers are set to become Co-op franchisees. This deal allows Costcutter to have access to Co-op’s entire range and work with the brand to add to its own offering. The collaboration will also increase Costcutter’s buying power and give the business access to Co-op’s carefully selected product range and great promotional deals. It’s likely Costcutter will be able to encourage more customers to its stores as a result of offering Co-op products.

• Becoming a Costcutter franchisee: There are many benefits to becoming a Costcutter retailer. One of the biggest is its flexible franchise package, which enables investors to pick the one that best suits them. Also, you’ll be part of a big company, so you’ll get great insight into customers’ shopping habits. In turn, this should help you make informed decisions to increase your sales. Costcutter will even give you access to market leading technology to make sure you’re always at the top of your game.
• How much you need to invest: There isn’t any information on how much it might cost to set up your own Costcutter store, but you could find out by getting in touch with the franchise. Although we can’t say how much you might end up spending, Costcutter may offer good value for money, as there’s no joining fee, no membership fee, no surcharges and great rebates.
• What you get for your investment: Costcutter strives to help independent retailers thrive. Its business model allows retailers to remain independent whilst supporting them in a competitive market. The package includes support with buying, marketing, retail and technology. Costcutter aims to deliver a sense of “fun, freedom and function”. This is made possible by having a large range of quality products, core product lines, excellent promotional deals and great pricing every day, and supporting its retailers.

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Be there for your local community

You can find out more about the Costcutter franchise opportunity by contacting the business directly. Or, if you’d like to take a look at some other convenience store franchises, we’ve got plenty of information.

For a comprehensive look at the grocery store franchise opportunities in the UK, see our Top 7 Supermarket Franchises in the UK.

Alternatively, find more information about three great franchises here: Start a Retail Franchise with Our Top 3 Convenience Stores.