YORK-based supermarket chain Costcutter has clinched an important deal to continue to supply Murco, the UK forecourt division of US-based Murphy Oil, which now operates 212 Costcutter sites on its petrol forecourts.

Murco has been supplied by Costcutter for the past 12 years, with business developing successfully over this time, and the new contract has been agreed to run until June 2012.

The deal is expected to generate a turnover through Costcutter in the region of £100m a year Since its original partnership agreement started with Costcutter in 1996, Murco has greatly expanded its UK store estate, most recently towards the end of 2008.

In September 2008, Murco established its first presence in Scotland with the purchase of seven sites in the West Lothian and Falkirk areas.

In October, the acquisition was announced of 62 Petrol Express forecourts, throughout England and Wales.

Nick Ivel, Costcutter managing director, commented: “We are delighted with the outcome of our negotiations with Murco, and that we will continue to work with them to further develop their forecourt stores.

“Costcutter has a package for retailers which cannot be matched by any other symbol group, a fact which is confirmed by this result.”

The Costcutter Supermarkets Group operates a franchise operation with more than 1,500 convenience stores throughout the UK. In slightly more than 21 years the group has grown from seven retailers to 1,500-plus. The firm offers more than 200 own-brand products sitting alongside famous names such as Birds Eye, Walkers, Cadbury, McCain, Andrex and many more.