Spar store surge spurs sales swell
Spar UK increased sales by 8.5% in 2016 due to 186 Spar store additions and a renewed focus on foodservice, according to the retailer.
The new Spar store addititions take Spar UK’s total tally up to 2,620, with a retail area five times larger than Buckingham Palace. This makes the UK arm of the Dutch parent company the largest UK forecourt retailer and the third largest division of Spar international.
UK MD Debbie Robinson said the brand was in “a fantastic financial position” due to their partnership approach to stores, successful ranging and their Daily Deli offering. Robinson stated, “Our Daily Deli foodservice offering, more fresh food including butchery and deli counters, and our award-winning SPAR Brand range are just some of the reasons shoppers now see us as a go-to destination for great-tasting, fresh food.”
Food-to-go remains a key trend in the convenience market, with a report published by P&H predicting 35% sector growth between now an 2021. This will take the total food-to-go market size to £21.7 billion. Currently only 13% of convenience retailers have a hot food offering.
Despite the Spar store and revenue growth, the retailer provided no information on how this had impacted store margins. Comments by the retailer in their annual report earlier this year also suggest that this growth may not last. It reads, “Investment in the sector by the multiples has slowed as it becomes harder to find good quality sites.”
Retail Express asked Spar to provide additional profit information and will update when the information becomes available.
Share this story