A reborn business specialising in bulk buying is doing a roaring trade — thanks to the recession.

Edward Correia and business partner Octavio Mendonca opened A&M Bulk after they bought out the former Fresh N New in Smiths just four months ago.

And Mr Correia said trade so far had exceeded expectations.

He explained: “At the end of the day it’s one thing — savings. People don’t mind buying things in bulk — it will last the entire month and it will save you money.

“In today’s economy, people want to save a couple of dollars. There are people out there who are money conscious to the point that 25 cents is important.

“These bulk-buying places have done better because of the recession — it’s made people more cost-conscious and that definitely hasn’t hurt.”

Mr Correia added: “You have to be competitive. You can’t compete with everyone. We try very hard not to gouge people but at the same time make a buck for the work and effort people put into the business.

“The goal was to satisfy a need for a shop like this. People are looking for savings and that’s the bottom line. Savings and variety, because not everybody likes the same things.

“but if we provide the variety at a decent price, people will support that.”

The cash and carry business, which offers a range of staples in bulk, is modelled along the lines of US giants Costco, Sam’s Club and BJ’s — and carries many of their own-label brands.

Mr Correia said the Devil’s Hole Hill location of the store was also a plus when the business became available.

He added: “It’s an ideal location. There aren’t any businesses like this around here. We know we will get a steady flow of customers from the neighbourhood, even if we don’t attract people from other parts of the island.”

Mr Correia — who is general manager of wholesale liquor, wine and water firm Premier Distributors — spent 30 years in the reinsurance business before branching out.

Mr Mendonca has a background in the food business, so is familiar with the product lines.

Mr Correia said: “My side of it is more financial, while Octavio has experience of running a store.”

The store carries popular items like paper towels, toilet paper and other paper products, as well as toiletries, laundry and kitchen products, pet food and non-frozen food.