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Costcutter growth despite credit crunch
Published:  18 August, 2008

Costcutter has announced sales increases of 6.2% year to date and are above budget despite the on-going threat of the credit crunch.

Angela Barber, trading and marketing director of Costcutter Supermarkets Group Ltd, says “I believe the reason that sales are increasing above and beyond our target comes down to a number of marketing and current consumer trends.”

Costcutter’s TV advertising has increased brand awareness significantly. With over 12 million people viewing the adverts, it not only makes them aware of the Costcutter brand, but also of the fantastic deals that are available in-store on a 3 weekly basis. The promotions each period are also seen to be extremely competitive.

The current trend for people to shop locally; such as farm shops, delis and butchers to name a few, means that Costcutter is a destination shop for many local shoppers. This trend can be explained by people wanting to support their independent stores as well as limiting their fuel expenditure due to the out of town locations of the multiples.

Retailers have reported noticing a change in consumer spending habits such as increasing their purchases of promotional deals. Costcutter has therefore increased its promotional activity such as Summer savings, Half Price and buy one get one free deals, to complement their great value own-label brand. This means that customers have a much larger choice of goods at very reasonable prices.

Making a Difference – Locally is another contributing factor to Costcutter’s continuing success. With shoppers switching from other retailers and really watching what they are spending, it is imperative for customers to have a good reason to shop within a certain store.

Barber concludes “Trade is very tough at the moment, but as long as retailers ensure they are offering a good service then this can be seen as a major opportunity for our sector to capitalise on the current economic factors.”