image/svg+xml

Premium

Retail

Costcutter Dunmanway – Practical, Pretty and Profitable

By Maev Martin
Costcutter Dunmanway – Practical, Pretty  and Profitable

On Friday, 10 May, Costcutter Dunmanway began trading with an entirely new store, courtesy of a major makeover by the Barry Group. Maev Martin talks to Chris Curtin, the owner of the first Costcutter store to implement this new branding, about the new look store, its impact on customers – and on sales

While there have been many revisions to the Costcutter brand’s visual identity over the past 23 years, this recent brand refresh is on a much bigger scale than any previous changes.

Featuring a new store specification, as well a new look for the Costcutter brand, the project also includes the development of a new off-licence offering, which will be available exclusively to Costcutter retailers.

The implementation of the new brand identify started at Costcutter Dunmanway earlier this year, and will be followed by Costcutter Bishopstown and another 12 stores nationwide by the end of this year.

The new look Costcutter is all about elevating the brand’s position in the Irish convenience sector, and the Barry Group has invested accordingly by expanding its team and developing its in-store offer.

ADVERTISEMENT

Barry Group believes that these strategic advances strengthen the brand and elevate it – not only in the eyes of the consumer – but also in the eyes of prospective retailers who are looking to join.

Chris Curtin is one retailer who was very eager to join the Costcutter family.

He has been running his store in Dunmanway, Co. Cork, since May 2022, but he decided to become part of the Costcutter estate last year and began trading as Costcutter Dunmanway in January 2024.

“I decided to join the Costcutter brand for several reasons and one of those reasons was the Barry Group’s competitive pricing when it comes to alcohol,” says Chris.

“They had the offers that we wanted.

ADVERTISEMENT

"We operated an off licence prior to the revamp but now, with Costcutter’s 55th St. off-licence offer, it is much more buoyant.

"We have seen the off licence sales increase by over 80% at certain points in the year compared to last year, but on average they are up by about 60% to 70% on last year.

"Confectionery and crisps sales are also up significantly as many people purchase those items when they are shopping for alcohol.

“In addition, our store is one of the bigger Costcutter stores in the country – at around 450 square metres wall to wall – so we needed a group that would offer us better sizes on pallets and that would allow us to evolve from a store that was primarily about basket shops to one where a significant number of shoppers were doing trolley shops.”

Chris was also very impressed by Costcutter’s Market St. Deli and Urban Sips concessions.

ADVERTISEMENT

Strong Retail Team

Costcutter Dunmanway employs 25 staff, which includes plenty of part-time workers and a handful of full-time retail assistants.

“I think the Barry Group selected us to be their flagship store for the new design because we are a big store and we also have an excellent retail team,” says Chris.

“All our staff are well trained and are trained to work in all sections of the store, including myself.

"We employ a lot of secondary school students and college students, so we have a big roster and it works out well.

ADVERTISEMENT

"Seven members of our retail team can work in the bakery, another seven can work in the deli, eight are trained to work on the tills, and five of our team are capable of doing orders, so if someone calls in sick I can move staff around very quickly, and I can move onto the tills.

“This level of training and flexibility maintains consistency of service for our customers and it takes the pressure off when people need to take holidays or are out sick.

"I try to be on the floor in the morning and I then head into the office in the evening.

"I can bring the office work home with me, not the store, so I prefer to be hands on and out in the store during the day.”

Costcutter Dunmanway also has a large deli area, they bake all their own breads, including sliced and crusty rolls, and they have a massive fruit and vegetable range, as well as three bakery tables full of confectionery that feature their own cupcakes and scones.

“The Barry Group worked with us to bring all of that to the next level, so we benefitted hugely from the support that their fresh food team offers,” he says.

The massive renovation and re-branding programme began in March and was completed by mid-April.

“The support we got from Costcutter was excellent and the project was managed very professionally from start to finish,” says Chris. “We always knew what was happening every day.

"The Barry Group have put a lot of resources into their on the road operation and this resulted in a very high-quality and stress-free store makeover.

"Everything was changed – floors, ceiling, lights, shelving – so it was a huge job but one that they managed to deliver in a six-week period.

"The store was fully trading during the revamp period.”

Feedback and Sales

So what feedback has Chris been getting about the new look?

“Both our staff and our customers love it,” he says.

“We installed a new seating area for 20 people in the store and it is full up to four or five times a day.

“We previously had a small seating area/breakfast bar near the front window, and it wasn’t very comfortable, but our new area is bigger and more relaxed, with contemporary wooden chairs, padded seats and a feature wall.”

When it comes to sales, Chris reports that they are continually climbing.

“We are now operating a totally different store,” he says.

“Every section has experienced an increase in sales of between 16% and 20%, apart from cigarettes, newspapers and Lotto, which are trending down across the trade.

"Overall, we are seeing an increase in sales of 15%, on average, compared to last year.”

55th St. Off-Licence

55th St. off-licence is Costcutter’s most recent own-brand concession and it made its debut at Costcutter Dunmanway.

“Visually, it is my favourite area in-store and it is home to some very competitive offers,” says Chris.

“We sell several own brand vodkas, whiskeys, ciders and beers that are exclusive to the 55th St. off licence.

"We are probably the best value off licence in town and it is the flagship area in the store.

"Sales are growing continuously, and we keep hitting new sales highs, particularly during bank holidays.

"Our customers are seeing the range and offers available, and how easy the section is to navigate, and that is down to the design by the Costcutter team.”

Market St. Deli

Costcutter’s Market St. Deli has a traditional deli offering (wedges, hot chicken fillets, jambons etc.), as well as a healthy offering, which encompasses a wrap, a roll, a sandwich or a bowl (salad).

These four components are then filled with different salads, meats, meat alternatives, vegetables, fruits and cheeses.

There is also a ‘Grab & Go’ offering which consists of sandwiches, rolls and salads.

Chris describes the Market St. Deli concession as “fantastic,” from the signage and digital screens to the menus.

“Our deli has always produced quality food, but we now have a beautiful deli design and presentation to match it, as well as a great menu for shoppers,” he says.

Urban Sips

Coffee has always been a profitable area for Costcutter Dunmanway and it is now even more profitable with the installation of the Urban Sips coffee machines.

Urban Sips is a barista style coffee.

The beans used are Grade 1 Arabica beans from Nicaragua, Columbia and Ethiopia.

“We increased the size of our coffee area and installed two machines,” says Chris.

“The coffee is lovely and the support service is great – we have yet to have any downtime and we have been operating the machines for four months.”

As part of the Barry’s Group’s CSR, their Nicaraguan bean supports the Flores del Café (Women’s Fund Project).

It is a fair-trade coffee and is produced exclusively by women and helps them get legal title for their land.

These titles enable women to get access to credit and loans to support their families.

Freezi Licks

Ice cream wasn’t a big part of Costcutter Dunmanway’s business prior to the makeover, but they have now installed Costcutter’s Freezi Licks ice-cream concession and it is performing well.

Freezi Licks ice cream is handmade using 100% fresh milk and cream delivered daily from grass fed cows on West Cork farms.

The Freezi Licks range includes soft scoop ice-cream, whipped ice-cream, whip & mix, slushies, natural frozen yoghurt, milkshakes and smoothies.

Closing The Gap

Has Chris noticed any significant changes in shopper behaviour or in the profile of shoppers visiting the store since the new look and new concessions were introduced?

“We receive a regular insights report from AIB Bank, which monitors all our transactions and shows the age group of our shoppers and their location – for example, do they live within a specific number of miles of the store,” he says.

“While we have always had a lot of students and strong representation in the various age groups over 40, there has always been a big gap for shoppers between the ages of 20 and 40.

"Now, post revamp, they have come back, and we attribute that to the new look, new layout, and new in-store concessions, in particular the new cocktail ranges and better wines in our 55th St. off licence, as well as our Urban Sips coffee.

"We are now attracting people of all ages, from school kids to people collecting their pension on a Friday. Average spend is up and we have retained – and regained – customers.”

Read More: Onwards And Upwards At Twohig’s SuperValu Kanturk

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.