A Costcutter retailer says she has been left with “very few answers” about the symbol group’s forthcoming deal with Co-op after the first of 39 roadshows.
The nationwide roadshows aim to offer more detail about the exclusive supply deal between the two companies which starts in spring and was first announced following the collapse of wholesaler Palmer & Harvey (P&H).
Sue Nithyanandran, of Costcutter Epsom, attended the first roadshow in London, but said she was left feeling frustrated.
“We didn’t receive much information about range or pricing, which is concerning considering the agreement comes into effect in April.
“We already went through traumatic times with P&H collapsing. My range was affected and I don’t know how it will change again in the next three months,” she said.
According to Mrs Nithyanandran, the Co-op will not be making its own-label range available immediately. “It will be phased in but the fact nobody from Co-op was present was also strange,” she said.
Mrs Nithyanandran added that attendees were told there will be a maximum RRP set on Co-op own-label products, which Costcutter retailers cannot exceed. “Concerns were raised about how this would limit the margins a retailer could make, but we weren’t getting very good answers.”
Commenting on the roadshows, a Costcutter spokeswoman said more detailed information would be provided in March to all the retailers concerned. She said: “This is only the first step in sharing the information on all aspects of the new supply arrangements.
“These events are important opportunities for us to speak directly with our retailers and because this has been the first time we have brought our retailers together since the collapse of P&H, we felt it was important to have the conversation directly with them without Co-op.”
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