Retail News: Costcutter to tackle supermarket threat

 

Costcutter, the convenience store group, is gearing up for a heavyweight brand campaign as it stands its ground against supermarkets moving into its sector.

The drive, unveiled by chairman and managing director Colin Graves at its annual meeting last week, includes a raft of plans to establish the group as the number one retailer in the franchise group sector.

The campaign, created by Leeds agency Mezzo, will focus on key brands and price competitiveness under the strapline 'Loved by locals'.

About 65 slots have been booked on GMTV, with the ads being aimed at housewives who tend to convenience shop in the morning, and workers who pass a store on their way to and from work.

Costcutter trading and marketing director Angela Barber said the activity was intended to ensure that 'the Costcutter brand retains a high profile in the convenience store sector'.

Graves, who also outlined plans to revamp the retailer's in-store radio station and store fascia, added that sales were increasing by 6.8% year on year. However, he warned that Costcutter would face a number of problems over the next year in addition to encroachment by supermarkets.

These include govern-ment licensing legislation, increased rates, community charges, extended paternity and maternity leave for employees and a rise in the minimum wage.

Separately, Costcutter plans to extend a partnership with Murco Petroleum, which operates 50 forecourt stores using the chain's fascia.

Last year Sainsbury's almost doubled it presence in the convenience store market with the acquisition of the 114-store Jacksons group. Rival Tesco purchased the 870-store T&S chain in 2003.

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