Bestway Wholesale acquires Costcutter Supermarkets Group
Bestway Wholesale has announced agreement for the acquisition of Costcutter Supermarkets Group (CSG) from Bibby Line Group.
Under the terms of the acquisition, which is subject to approval by the Financial Conduct Authority, CSG and its brands will become part of Bestway Wholesale’s retail division and continue to operate as normal.
Approximately 1,500 stores branded as Costcutter, Mace, Supershop, Kwiksave, and Simply Fresh, along with 20 Costcutter and 4 Co-op franchises, will join Bestway Wholesale’s retail estate, which includes Bargain Booze, Best-One, Wine Rack, Select Convenience and Central Convenience.
The deal would take Bestway’s retail estate to more than 3,795 stores in the UK, including 195 company-owned shops, and its turnover would rise to almost £3 billion.
CSG has achieved an improvement in its financial performance over the last two years following investment in key areas of the business. During the 12 months to 31 December 2019, CSG’s sales increased by 10% to £426 million, with sales and profitability continuing to rise throughout 2020 as consumers increasingly shopped locally as a result of the COVID-19 pandemic. The company employs around 500 people.
Dawood Pervez, managing director of Bestway Wholesale, emphasised that CSG’s retailers will continue to enjoy all the benefits, features and services they currently enjoy: “As part of Bestway Wholesale, the team at Costcutter will be able to build upon the amazing results they have been achieving in partnership with their retailers, helping them to innovate and adapt to an ever-changing market in order to grow their businesses and sales.”
He added: “The existing CSG supply contract with Co-op/Nisa is not affected by the acquisition and Nisa will continue to supply CSG stores. The 2,000 SKU Co-op range has proven to be an important driver of footfall and sales, as well as providing CSG retailers with an exceptional range of fresh produce.
“CSG has a series of virtual roadshows planned for January and I’m looking forward to meeting as many retailers as possible and having the opportunity to discuss their views and needs, and explore ideas for the future.”
Pervez added that the acquisition of CSG will enable Bestway Wholesale to build on it solid foundations in independent retail. “Clearly, there will be benefits of scale and investment in joining forces for our retailers, shoppers and suppliers,” he said.
On completion, the acquisition will make Bestway – which also operates in the pharmacy, banking and cement sectors – the eleventh largest independently-owned multi-national conglomerate in the UK. Founded by Sir Anwar Pervez in 1976, the family remains at the helm, with nephew Lord Zameer Choudrey as CEO of Bestway Group, and Sir Anwar’s son, Dawood Pervez, as managing director of Bestway Wholesale.
Darcy Willson-Rymer CSG’s CEO of nine years, will be leaving the business following completion of the acquisition. He commented: “Joining a business of Bestway Wholesale’s size, scale,and expertise will unlock new opportunities to help CSG’s independent retailers thrive. This is a cause that I know Bestway is absolutely committed to.
“Right now, that means three things: helping our retailers navigate the challenges of the COVID pandemic; continuing to invest in the business development support our retailers receive and the retailer sales growth we are able to deliver through Shopper First; and introducing new and innovative ways to engage shoppers and deliver the very best retail offer available.”
Tel: Bestway Wholesale 020-8453 1234
