Convenience chain Spar today unveiled plans to grow its own-label sales by 10 per cent over five years, from 29.2 per cent to 40 per cent of its business.
The move will be driven by improving distribution of existing own-brand products, and placing the 100 Spar best sellers into every store in the country.
It was announced today at a brand launch event at the symbol group’s UK central office in Harrow-on-the-hill.
Susan Darbyshire, Spar UK brand director said taking own-brand participation up to 40 per cent will bring the business in line with small formats of multiples.
“If customers like own-brand products we will get more loyalty. Own-brand is a key transformational pillar for us,” she said, adding that it serves a different purpose depending on the category, by adding value for money or quality.
“The success of own-brand lines has been driven by Spar retailers who see the value in it, as well as competition between multiple retailers which has driven awareness of the quality of own-brand,” Darbyshire added.
Spar will also reformulate all existing own-brand recipes and products to reduce salt, sugar and saturated fat content by December, to prepare for the traffic light nutritional content labeling system.
Fresh fruit and vegetable supply is done through Spar's regional distribution centres (RDCs), but prepared produce in meal solutions and meal components are part of Spar's own-brand offering.
Franchising and price pressure
When asked whether Spar will consider franchising as competitors Nisa and One Stop have done, UK managing director Debbie Robinson said: “Our model is different. We are not considering franchising at the moment, but we are not ruling it out.”
She also addressed the price pressures created by the ongoing rise of the discounters: “Small stores seem more expensive, that’s the consumer perception. What is important is your experience is of good value for money.”
