Making the success of your business, our business.

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1 Making the success of your business, our business.

2 Introduction. Shoppers are now looking for better value. As we all know in today s tough economy, consumers have adapted their shopping behaviour, choosing to buy little and often rather than the traditional weekly shop. With even greater choice on the high street, it s a fact that consumers are now more than just price savvy; the best range, the best promotions and the highest store standards have become the minimum from which to compete. It s now more than good retail, this is our Livelihood.

3 A new alliance. Introducing The Buyco. The Buyco is a completely new approach, created jointly by Costcutter Supermarkets Group and Palmer and Harvey, bringing significantly more buying power than currently available. The Buyco is an independent company, set up to provide Costcutter Supermarkets Group and Palmer and Harvey with market-leading negotiating power in the UK convenience sector. The Buyco will work closely with suppliers to meet retailers needs, making sure they receive a range designed with quality, need and value in mind. Costcutter Supermarkets Group will create the right range and promotional framework for its members. The Buyco s job is to negotiate the best possible prices. Strength in numbers. Palmer and Harvey is moving away from direct management of symbol group convenience retailing to focus on its wholesale distribution strengths. Its Mace, Supershop and Your Store brands, operations and 800 stores will join Costcutter Supermarkets Group. Benefitting from combined retail best practice, the new strength of the 2,500 stores within Costcutter Supermarkets Group will reinforce independents rightful place on the high street against increasing threats. The symbol brands will complement each other to suit the needs of local communities. This alliance is an excellent cultural fit, as Costcutter Supermarkets Group and Palmer and Harvey work towards shared goals. There s no competition between the two companies, whose areas of expertise complement each other perfectly. The leading retail support group. Costcutter Supermarkets Group is taking complete control to give its retailers exactly what they need. It has entered into new, complementary partnerships to bring significant benefits to retailers. It is investing huge amounts to create a new convenience retail solution that combines Costcutter Supermarkets Group s retail expertise, a totally new buying company, called The Buyco, and the best-in-class wholesale distribution services from Palmer and Harvey. The best wholesale distribution partner around. Palmer and Harvey will be Costcutter Supermarkets Group s wholesale distribution partner. As the UK s leading wholesale deliverer they are the best choice. Through its national infrastructure of 14 distribution centres across the UK it provides a personal service to retailers, ensuring deliveries arrive on time and in full. Palmer and Harvey are within two hours of any of its customers.

4 How it will work. Palmer and Harvey will purchase the product. The retailer is invoiced by Costcutter Supermarkets Group. Costcutter Supermarkets Group owns the retail proposition. The retailer places their order. Order is delivered by Palmer and Harvey. The Buyco negotiates the best product price.

5 Range. Promotions. Chilled & Dairy Own Label Range. Beer / Wine / Spirits The most comprehensive range that offers the best choice and value in the independent sector bar none! It s a bold statement but something Costcutter Supermarkets Group has been working towards for many months. Through listening to the needs of consumers and retailers, an extensive research programme has identified that Costcutter Supermarkets Group needs to offer the right range, not simply the biggest. Consumers eating habits have changed and so have their lifestyles, hence the new retail range created by Costcutter Supermarkets Group has considered the latest category thinking in all areas of retail and not just the buzz categories of the moment. The new range won t just rest on its laurels, it will continue to evolve as consumers and retailers tell Costcutter Supermarkets Group exactly what they want. Listing a new line to meet retailers needs is no longer a problem, it s a pleasure. Own-label, often overlooked, will play a significant role along with the brands in driving value and choice to both consumer and retailer alike. There will be a new own-label brand, designed by an internationally recognised award-winning agency to compete with the best that s out there. Spanning all categories, this new brand will give real choice from value to premium; there really will be something for everyone. Fresh and chilled, so often categories that are difficult to get right, are at the top of the shopping list. Costcutter Supermarkets Group now owns its retail range and it will be the right range. A successful Livelihood starts with the right range. Retail support. Frozen Delivery. Tobacco Impulse Fresh Ambient

6 Promotions. Price. ort. Palmer and Harvey and Costcutter Supermarkets Group have together created a new not-for-profit buying company called The Buyco. This new venture will have over 5 billion worth of buying power putting Costcutter Supermarkets Group s retail customers in a different league to the rest. The Buyco is jointly and equally owned by Costcutter Supermarkets Group and Palmer and Harvey and has one simple mission: to negotiate on retailers behalf a significant reduction in the cost of goods, through the considerable volume this new alliance delivers. In short, The Buyco will create Value through Volume by working in close collaboration with suppliers. Direct to store lines/plus extra including milk and bread will also come under The Buyco umbrella. Those so important local lines are key to the success of today s modern retailer and Costcutter Supermarkets Group will deliver even better pricing than retailers currently enjoy. Through a brand new order capture system developed by Costcutter Supermarkets Group and the transparent relationship with Palmer and Harvey, retailers will be guaranteed Delivery. simplicity. Consolidation in this sector is the only way retailers will ever get close to the prices they need to compete. This is all of our Livelihoods.

7 Promotions. HALF PRICE Promotions. The most compelling promotional offer to drive consumers to Costcutter Supermarkets Group retailers stores will now be a given! With total control over pricing to our members, Costcutter Supermarkets Group will be in command of their promotional offer. Frequency, product, margin, mechanic and communication will all be managed by Costcutter Supermarkets Group s promotional strategy; meaning retailers get the right product on promotion, at the right time, at the right retail price and at the best margin. To satisfy their existing retailers, Palmer and Harvey will be implementing their own promotional strategy. The Buyco will negotiate the very best price with suppliers and work strictly to the brief set by Costcutter Supermarkets Group. But the promotion price is only a small part to winning those sales. Delivery. Retailers need to feel confident that the promotional lines they order are in stock and available to buy when they want them. Palmer and Harvey s best-in-class forecasting and delivery system is there to ensure all lines, and particularly the promotion lines, are available when ordered. The new Order Capture System, developed by Costcutter Supermarkets Group, will work seamlessly to help Palmer and Harvey achieve this. Costcutter Supermarkets Group s promotional strategy won t just be the traditional threeweekly campaign; consumers and retailers say they want more retail stimulation and that s exactly what they will be given. To complement the regular three-weekly promotional activity, retailers can expect weekly deals, stunted deals and end-of-line stock to really drive sales. It s profit that makes Costcutter Supermarkets Group s retailers Livelihood.

8 Retail support. Delivery. Retail Support. For over 26 years Costcutter Supermarkets Group has supported independent retailers to grow their business and become successful members of the retail community. The result is a unique and ever-growing tool kit of industry-leading support services that will only get stronger. The Sales and Customer Support Teams are dedicated to their retailers and are considered trusted, respected and knowledgeable assets and an extension to the retailers team. Costcutter Supermarkets Group has continued to lead the way in independent retailing. They were first to market with national press and television advertising and are the proud developers of an industry leading and widely renowned EPoS solution. Category Management continues to be an important weapon in maximising sales and performance. Using the latest technologies, Costcutter Supermarkets Group will be the first symbol retailer to offer store-specific, live image planograms that can even analyse the sales data of the entire store. Costcutter Supermarkets Group recognises that Mace is a strong brand with a loyal following in its own right and undoubtedly both groups of retailers can learn from each other. Costcutter Supermarket Group. Retailers working for retailers, that s their Livelihood.

9 Delivery. Delivery. A reliable, predictable, flexible and local delivery service on time and in full. Fact! Palmer and Harvey s total focus and drive will extend the benefits of their industry-leading wholesale distribution to the Costcutter Supermarkets Group retailers. With fourteen Regional Distribution Centres across the length and breadth of the country and over 1,000 trucks to service the retail estate, there isn t anyone better placed for retailers to put their trust in. Retailers can enjoy unrivalled service levels that consistently exceed expectations; the delivery driver will even help to unload the order in the place where retailers need it. They really are an extension of the team. Retailers will be allocated their very own Distribution Centre Manager who will be accountable for ensuring the service they receive is the very best it can be. Costcutter Supermarkets Group s retailers can work with each Distribution Centre Manager to get the best delivery time for them, plus they can decide if the order is dropped in cages or pallets. All deliveries can be multi-temperature. As part of their renewed focus on wholesale distribution, Palmer and Harvey has signed a lease on a new Distribution Centre in Northern Ireland that will offer the best level of service to retailers in the province. This new centre will specifically cater for chilled and frozen lines and complement the ambient facility already in place. Palmer and Harvey is exceptional at wholesale distribution the perfect partner to have in this new alliance. Service and delivery is Palmer and Harvey s Livelihood.

10 Putting retailers businesses at the heart of ours.

11 OUR DOORS ARE ALWAYS OPEN! Contact us: If you have any questions, please get in touch: Red Spot Reference: PANTONE 032c Supermarkets Group Proud to be local

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