THE SPAR GROUP
Spar branded products
GROWING THE BRAND
With the 1960's emergence of grocery chains in South Africa, a group of eight wholesalers were given the exclusive rights to the SPAR name in 1963, to service 500 small retailers. A number of mergers and take-overs followed, and today, The SPAR Group Ltd operates seven distribution centres and supplies goods and services to SPAR stores in South Africa, Swaziland, Botswana, Mozambique, Namibia, Zimbabwe, and Zambia.
SPAR is more than just a retail chain. SPAR operates under "voluntary trading" principles which means that retailers are encouraged to be independent and to develop their own identity. While retailers can take advantage of SPAR's trading power, they can also source goods from local suppliers. Every one of the stores has been made with one thing inmind, to create the most unique shopping experience for their most valuable asset, their customers! That is why each store has an individual personality.
The group continues to aggressively focus on driving the retail growth of existing stores, looking for new business opportunities, stringent cost control and securing operating efficiencies. During 2010, 31 new stores were opened and 13 stores changed to larger store formats. Of particular satisfaction was the upgrade programme which resulted in 146 stores completing revamps. It is anticipated that 25 new stores will open during 2011, which, together with store revamps, will add approximately 3% to retail trading space. However, stores which fail to meet group store standards will be closed.
SPAR branded products had a solid year achieving wholesale sales in excess of R3.9 billion and a growth of 9%. Extensive product development took place with 310 products being introduced or repackaged. In many instances packaging now includes detailed information on product ingredients and guidelines on recommended daily consumption, the objective being to help consumers to live a balanced and healthy lifestyle.
SPAR STORES
KWIKSPARs with selling areas of up to 600 mē are designed for every day convenience. These stores focus on speed, and freshness in terms of produce, bakery, meat and prepared and takeout foods. KWIKSPARs carry a range of groceries at prices that offer good value for all shopping preferences.
With selling areas of 700 mē and above, SPAR stores focus on neighbourhood and rural supermarket shopping. SPAR stores are very competitively priced with a strong focus on friendly and professional service, and offer a comprehensive range of groceries backed by fresh produce, in-store bakery, butchery, deli and home meal replacement departments.
SUPERSPAR stores have selling areas greater than 1300 mē. The stores are aggressively priced against the chains and offer a full range of groceries and general merchandise, backed by extensive service departments such as produce, bakery, butchery, deli and meal solutions.
Through TOPS at SPAR stand alone liquor stores, SPAR encourages their retailers to expand their offering to include a full range of liquor products. Membership is an extension of The SPAR Guild and is only available to existing SPAR group retailers. TOPS stores must be located within close proximity of the member's store. The group now services outlets throughout South Africa, Namibia and Botswana. TOPS can now boast to being the biggest liquor chain nationally, being number one in store numbers, turnover and media spend. The group anticipates a solid trading performance in the year ahead and expects to open 35 stores, this not-withstanding that the issuing of liquor licences remains erratic in some regions.
SPAR, owns the BUILD it trade mark, with BUILD it stores operating as stand alone building materials outlets selling basic building and hardware products to home builders and renovators in the lower to middle sectors of the market. Membership is controlled through the BUILD it Guild, which is independent of The SPAR Guild. Membership is not confined to SPAR members. The 10 000 mē SPAR Group Imports Warehouse opened in the third quarter of 2010, as planned. This facility handles an extensive range of imported hardware for distribution to Build it retailers around the country. A further 18 new Build it stores are forecast to open in 2011.
