Costcutter strengthens with Red Orange deal

The move will see York-based Costcutter take on 36 stores, predominantly in East Anglia, but also in the Midlands, South and Merseyside.

The agreement allows Red Orange retailers to retain their existing fascias and independence but still use the services Costcutter currently offers its members.

Costcutter posted a turnover of more than 620m in 2009/10 and currently has 1,600 stores in its franchise network.

Chris Futter, managing director for Red Orange, said: "Our new agreement with Costcutter will greatly improve the offer to our members with a wider direct to store supplier choice, extensive retail guidance....and stronger, consumer-focused marketing."

Nick Ivel, managing director for Costcutter, said "We are delighted to welcome Red Orange and its retailers to the group. This is the first step in our strategic growth plan for 2010 to strengthen our volumes in the market place."

He added: "Costcutter is performing well in an increasingly competitive market. Our recruitment is strong and the fantastic marketing campaign we're running for the World Cup, including TV advertising, continues to drive brand awareness and consumers into Costcutter stores."