CSG introduces measures to improve delivery service and support key category growth

22 June 2020

June 19, 2020: Costcutter Supermarkets Group (CSG) today announced a range of measures designed to improve the Delivery On-Time service that all retailers receive from CSG, support key growth categories and to reduce the carbon footprint of both CSG and its retailers’ businesses.

Improvements to Delivery On-Tim

To improve Delivery On-Time, CSG will be making changes that will maximise the efficiency of existing deliveries. This will involve increasing the Minimum Order Quantity for ambient products from 80 cases per order to 120 cases per order, and by introducing a small £55 (+VAT) charge for any retailer that does not use their delivery slot.

Mike Hollis, Retailer Director at Costcutter Supermarkets Group, said: “We are constantly looking for ways to improve the delivery service our retailers receive. 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.

“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.”

With the vast majority of CSG’s 1,550 retailers already maximising both their orders and delivery slots, the changes will improve the consistency of service with no cost impact for the majority of retailers.

Supporting growth categories & brand perception

As part of CSG’s ongoing initiative to support key growth categories, CSG will no longer pay any rebate for spirits purchases. All spirits purchases will still count towards a retailer’s Average Weekly Spend calculation which still helps them reach for the maximum rebate of up to 6%. To qualify for their rebates, CSG retailers will also need to correctly display key deal ends.

At the same time, to support the key growth category of fresh foods, CSG is trialling an enhanced fresh rebate of +1% 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. 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.”

Reducing carbon footprint

To support CSG’s commitment to reducing its carbon footprint, a new £6/week recycling charge is being introduced – retailers have the choice to opt out.

“We know that the vast majority of our retailers share our ambition of reducing the carbon footprint of all our businesses. 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.”

Timings of changes

These changes come into effect from July 20th onwards with the exception of the rebates changes which come into effect from August 3rd.

 

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For further information please contact: Sophie Hayes and Christine Mortimer at MCG PR on 0113 307 0113; e-mail sophie.hayes@mcg.agency  Christine.mortimer@mcg.agency

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