Costcutter raises minimum order quantity; cuts spirits rebate

Costcutter Supermarkets Group (CSG) has announced several measures concerning its delivery service, rebate scheme and environmental sustainability.

The symbol group has increased the minimum order quantity for ambient products from 80 cases per order to 120 cases. It has also introduced a small £55 (+VAT) charge for any retailer who does not use their delivery slot.

“We are constantly looking for ways to improve the delivery service our retailers receive,” commented Mike Hollis, retailer director at CSG.

“Retailer feedback has been consistent about the need to improve the accuracy and consistency of delivery on-time windows. Having worked on the right solution for some time, we consulted retailers during our January 2020 Retailer Roadshows, where the principles of a solution were discussed and received enthusiastic support.”

The group claimed that the two measures will improve the consistency of service with no cost impact for the majority of retailers.

“By both charging retailers who do not use their delivery slots and maximising the efficiency of existing deliveries by increasing the ambient MOQ, we will be able to settle down into a regular delivery pattern which in time will provide our supply partner with a greater opportunity of operating to their delivery time windows,” Hollis said.

The group has also decided to do away with rebates for spirits purchases. However, all spirits purchases will be counted towards a retailer’s average weekly spend calculation which could help them reach for the maximum rebate of up to 6 per cent.

To qualify for their rebates, CSG retailers will also need to correctly display key deal ends.

The group said it is trialling an enhanced fresh rebate of +1 per cent in Northern Ireland which will be considered for wider national rollout.

“This small change in our rebates scheme forms part of a wider initiative to focus on growth categories, particularly fresh foods,” Hollis said. “Removing rebates on spirits is, like tobacco, part of our aim to place less emphasis on declining and low growth categories.

“In addition, when every Costcutter store is displaying the correct deal ends, we will be able to reinforce the Costcutter brand perception of price and value with shoppers. As we enter a recessionary period, ensuring all shoppers receive this same brand experience of price and value will be even more important than before.”

The group has introduced a new optional £6/week recycling charge as part of its measures to reduce carbon footprint.

“So that we can provide the best possible recycling service, we need to introduce this small levy which is a common charge across the Symbol sector. By allowing retailers to opt out, we are ensuring that this is a competitively priced service,” Hollis said.

The changes will take effect from 20 July with the exception of the rebates changes which come into effect from 3 August.