Convenience retail chain Costcutter has been acquired by business investment firm and majority shareholder Bibby Line Group, it was announced late yesterday.
Bibby now owns all of the retailer‘s assets, and revealed that there are “further opportunities” to increase its convenience business in due course.
Following the deal Costcutter‘s Managing Director Nick Ivel has become CEO, while the retailer‘s Chairman Colin Graves will now also hold the role of CEO at the newly created Bibby Retail Services.
Indeed, all of the management team who were previously shareholders in the business have signed employment contracts to remain with the firm under its new ownership.
A statement released yesterday read: “Bibby Line Group‘s approach to doing business is based on its core values which include focusing on developing long-term partnerships with all of its customers, suppliers and employees.
“Bibby Line Group will support the Costcutter management team in continuing to put retailers at the heart of the business and ensure that the organisation has the best people to deliver the best support for retailers to maximise throughput in their stores.”
Having made its initial investment in Costcutter in 2007, Bibby has seen huge potential in the fast-growing convenience sector.
Not only do specialist convenience operators such as Spar continue to post strong results, but the major supermarkets are increasingly seeing c-store development as a key area in which to grow sales.
Waitrose and Morrisons are among the leading grocery chains planning to significantly increase their smaller, more local stores in the year ahead, while Tesco, Sainsbury‘s and Co-op Food all plan to add to their already significant convenience portfolios throughout 2012.
Research released by grocery industry analysts IGD last week estimated that the convenience sector is set to be worth £42.2 billion in 2016, up from £33.6 billion in 2011.
“With the establishment of Bibby Retail Services, Bibby Line Group intends to look for further opportunities to grow its convenience retail business and realise the potential value within this sector,” the Bibby statement continued.
“Colin Graves is appointed CEO of Bibby Retail Services and his primary role is to identify new opportunities to deliver shareholder value for the long-term and better deals for the independent retail sector.”
