SPAR Unveils Investment Plans And New Store Concept

 Namnews, 28th May 2021

At its virtual trade conference yesterday, SPAR unveiled plans to invest £125m in its stores, supply chain, and IT over the next 12 months to capitalise on its strong performance during the pandemic.

After benefiting from the consumers shopping more locally during 2020, the convenience symbol group highlighted that its sales were still up 8.5% over the four weeks ended 28 March 2021, compared to the same period two years ago before the crisis. This growth is being driven by bigger baskets (+31%) and changes in the chain’s product mix and pack sizes.

“Last year was a year which saw accelerated growth as a result of the dedication and focus of our colleagues. Therefore, we are going to support them by investing £125m in our business in the year ahead,” said SPAR UK Managing Director, Louise Hoste.

“We will invest £100m in stores and we will invest £25m in improving our supply chain and IT capability – everything from depots to vans and electric bikes for home delivery. The potential is huge.”

Hoste highlighted the competitiveness of the SPAR proposition in the UK, with it benefitting from being part of the world’s largest food retail voluntary chain that enables it to share best practice.

“Our brand is distinctive,” she said. “By using data, we have a modern approach to delivering profitable store formats and propositions. Our marketing and digital activity is driving consumer consideration, footfall and increasing basket spend. Our own label range, SPAR Brand, delivers growth. It is worth over £350m annually and is the 20th biggest selling food brand in the UK.”

Hoste added: “It is encouraging to see how consumers continue to use our stores today. We see our future in local as consumers choose to shop locally in stores owned by independent retailers. Our heritage, both nationally and internationally, is rooted in the local communities we serve.

“Our core strength is in our store locations, our independence and the entrepreneurial spirit of our retailers.”

SPAR continued its expansion in the UK last year with over 300 new stores and refits. It also accelerated its online proposition through individual retailer activity and via third parties.

The group is now launching a number of “data-driven mission-focused” developments with new formats and propositions. This started with the recent redevelopment of a 2,600 sq. ft. store in Carnon Downs, Cornwall, which will be the first in the country to showcase a new SPAR UK design concept.

The next generation store includes a strong focus on provenance, with a wide range of local Cornish products across several 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.

A décor of dark grey fixtures and wood effect tiles feature strongly among warm colours, materials and finishes throughout the store, along with messages conveying support for local suppliers and producers, with products identified by Cornish flag stickers.

There will also 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.

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.”