Dutch retail multinational, SPAR, will open up 35 new outlets this year as it continues to aggressively fight off competition and carve a profitable segment of the market for itself.
Its CEO, Graham O’Connor, also informed to the public in the company’s annual statement that it plans to renovate over 180 existing stores, as well as open 45 new Tops at Spar stores, one of its subsidiaries focused on selling alcoholic beverages.
An unrelenting push
SPAR, the owner of popular retail outlet Pack ‘n’ Shop, is keen to continue its strategic expansion plans from where it left off last year. In 2014, it opened 19 Spar stores, 51 new Tops at Spar stores and 18 Build It stores, a report by Business Day South Africa confirmed.
This progress however came amidst a storm of challenges, particularly from foreign and local competition, labour uncertainty and financial limitations experienced by a few of its subsidiaries. All of these factors made it fall short of its predicted expansion targets for its Spar Stores, which was expected to hit 23.
O’Connor believes that despite these shortcomings, the brand was in line to maintain a profitable future. “Looking forward, the primary focus is retailer profitability, underpinning the long-term economic sustainability of the Spar Group’s business,” he emphasised.
Opportunities abound
SPAR recently acquired majority stake in BWG, an Irish retail group. It cited an abundance of opportunities inherent within the UK market, particularly with regards marketing and distribution for pursuing such an acquisition.
O’Connor, who spoke on the back of the purchase said that the company will continue to strive for a competitive edge over rivals by pursuing newer markets and niches, despite a tough operating environment. “As competition in the retail sector intensifies, we continue to focus on aggressively driving new business opportunities, organic growth, stringent cost control and securing operating and supply chain efficiencies,” he noted.
In its African market, SPAR has already recorded successful launches in Southern Africa, particularly Namibia, Botswana and Swaziland as well as in Africa’s largest economy, Nigeria. These achievements could further encourage more offspring within the continent.
It has however struggled to steady its Zimbabwean business, summarizing its operations in the country as ‘challenging’.
