Following on from what was one of its strongest-ever trading performances last year, Costcutter has revealed its sales have jumped 22% in recent months. The symbol group is now aiming to convert shoppers who have used its convenience stores as a lifeline during the coronavirus crisis into lifelong customers once the lockdown eases.
Following a difficult few years, Costcutter appears to have made a strong recovery in 2019 after accelerating investment in key areas of the business. The group’s sales rose by 10% to £426m during the 12 months to 31 December, with EBITDA increasing by more than £9m to £5.1m.
Darcy Willson-Rymer, CEO of Costcutter Supermarkets Group, said: “Having built a solid foundation in 2018, we were able to realise the potential of our business model to deliver growth throughout 2019.
“Our ability to create innovative solutions that help our independent retailers put their shoppers first and grow their business has been pivotal to our success story in 2019. Over the past 12 months, we have accelerated our investments in our overall retail offer and the guidance and support we provide for our retailers.”
With more people shopping locally during the coronavirus crisis, Costcutter’s non-tobacco sales were up 22% across the first four months of 2020. The group highlighted that its strong fresh food offer had enabled retailers to meet the needs of shoppers who wanted to carry out a full shop in a convenience store.
“In just two months, the coronavirus crisis has transformed the value of the convenience sector for shoppers and local communities,” said Willson-Rymer.
“Our retailers’ stores provided an essential role in providing lifeline support for their communities and keeping the nation fed. As a result, we expect sales to remain higher than usual for the time being.
“However, as the lockdown eases, demand may begin to slowly return to normal levels and that is when we will accelerate elements of our 2020 plans to help our independent retailers convert these new lifeline shoppers into lifelong shoppers.”
He stated that this would be achieved both by increased use of the group’s Shopper First customer insights programme – helping stores focus on the right range and offer with an emphasis on fresh foods – and a greater focus on digital experience and platforms such as Uber Eats.
Willson-Rymer concluded: “With new shoppers frequenting our stores there has never been a better time to fulfil our vision to be the best loved and most shopped symbol group in the UK. By continuing to focus on bringing communities together to make their lives easier and more prosperous, we can build on the success we have achieved in 2019 and fulfil our purpose of helping independent retailers thrive.
“Last year we said that we are challenging what Symbol Groups can deliver and we believe that 2019 proved our ability to fulfil that promise. Despite the external challenges that lie ahead, the opportunity to help grow independent retailers businesses has never been greater.”
