Spar UK

EVENTS: INDUSTRY CONFERENCES

Spar to invest £125m as sales grow 8.5%

AT ITS VIRTUAL CONFERENCE LAST WEEK, SPAR UK ANNOUNCED A MAJOR INVESTMENT PROGRAMME AS THE GROUP SAW SIGNIFICANT SALES GROWTH OVER THE LAST YEAR

Last week’s Spar UK virtual conference saw MD Louise Hoste announce that she is determined that the group will “maintain its lead in the convenience market” by investing £125m in the business over the next 12 months.

Spar reported YOY sales growth of 8.5%, achieved largely through bigger basket spends (up 31%) and changes in the mix and pack sizes.

Despite the challenges of operating through the Covid-19 pandemic, Hoste said Spar stores were “consistently there for customers” and partnered with multiple charities to ensure communities had access to essential items especially delivering to the vulnerable. Spar itself continues to support its national charity partner, Marie Curie, by fundraising and has already distributed over one million pieces of PPE to Marie Curie Nurses.

“Our independent retailers, store and wholesale colleagues are our real heroes of the last 12 months. They were consistently there for our customers.” – Louise Hoste, MD, Spar UK

Hoste said: “Our response to the Covid-19 pandemic highlighted the collaborative strength of Spar and the critical role of independent community retailing. Our independent retailers, store and wholesale colleagues are our real heroes of the last 12 months. They were consistently there for our customers.”

DATA-DRIVEN

She also hailed Spar as “the most compelling and competitive convenience proposition in the UK” and praised its use of data in “a modern approach to delivering profitable store formats and propositions”. The role of the Spar own-label range was also recognised by Hoste. It is now worth over £350m annually, the 20th-biggest selling food brand in the UK, she said.

Spar will invest £100m in stores and £25m in improving its supply chain and IT capability – everything from depots to vans and electric bikes for home delivery.

CSR

Hoste highlighted how “a lot of work has been done on Corporate Social Responsibility”. Spar, she said, has saved 13 million own label coloured plastic caps from soft drinks bottles going to landfill. The group also introduced narrow necks on drinking bottles saving 32 tonnes of virgin plastic, rolled out Too Good To Go app to stores, joined The Plastic Pact and signed up to the BRC Climate Action Roadmap.

Acceleration in an online proposition whether through individual retailer activity or with third parties has brought a new customer base to stores.

NEW STORE FORMAT

Spar is launching a number of data driven mission-focused developments with new formats and propositions starting with the redevelopment at Carnon Downs in Cornwall –the first in the country to unveil the new Spar UK store design concept.

LOUISE HOSTE, MD

The next generation store will include a strong focus on provenance, with a wide range of local Cornish products across many categories, along with an up-front butchery counter branded in the Cornish language and emphasis on the store’s reputation for fresh and chilled produce.

Dark grey fixtures and wood-effect tiles feature strongly among the warm colours, materials and finishes throughout the store, along with messages supporting local suppliers and producers, with products identified by Cornish flag stickers.

There will be a refill station section where customers can bring their own containers and buy loose products such as nuts, cereals, pulses, rice and flour. Local wines, craft beers and an artisan bakery will also feature, and the layout will take into account the proposed High Fat Sugar Salt (HFSS) legislation.

“The Spar own label range is now worth over £350m annually, making it the 20th biggest-selling food brand in the UK.”

ADAPTABILITY

Hoste concluded: “This is our seventh year of continuous growth and a strong platform to demonstrate how our strategy delivers sustainable growth. Spar is the leading convenience symbol group in the UK and the only proposition for independent retailers looking for a profitable future.

“Spar has shown great resilience with developments in retail, own label and across our supply chain. We have proven how adaptable we are. We look to benefit from our scale, whilst adding value to the local communities we serve. The future in convenience is with Spar.”