The Spar Group said that it plans to open its first-ever premium grocery store in the second quarter of 2025.
The retailer is now targeting more affluent shoppers and is planning to open as many as four premium stores next year, as it seeks to compete with the likes of Checkers, Pick n Pay and Woolworths, who all compete in the upper market segments.
‘We're on track to launch in the first half of next year, it might be just after Easter,” Spar’s Chief Executive Officer (CEO), Angelo Swartz said.
“The launch will initially be one store, although we have three or four planned for the year,” Swartz told Reuters.
Growth and reforms
Over the last financial year, the company has made some huge strides.
Turnover for the Group’s continuing operations in Southern Africa, Ireland and South-West England, and Switzerland, increased by 4.% to R152.3 billion.
Spar reported a significant 20.9% increase in profit to R1.6 billion, accompanied by a substantial reduction in debt of approximately 20% to R9.1 billion.
The retailer said that its gross profit margins remained stable at 11.9% compared to the previous financial year.
The company also noted that its tech issues in KwaZulu-Natal have been resolved.
Last year, Spar was forced to inform its shareholders that a new software system blunder had cost the company R1.4 billion.
The household giant moved to a new SAP software system and started rolling it out at their Durban distribution centre.
“While interventions to resolve the SAP impacts in the KZN region are well under way, it will take some time for the full effects to be felt and for the overhang on gross margins to be eliminated,” Spar added.
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