Spar has reported a significant sales rise as it capitalises on the relaunch its own-brand range and a number of promotional offers.
The convenience retailer is reporting an overall rise of 8.1 per cent, with like-for-like sales up 5.2 per cent, in the three months to July.
The group recently relaunched its entire own-brand range and added 250 new lines, which has resulted in the sales growth of Spar own-brand lines.
There have been percentage increases in most categories, with fresh foods now accounting for 50 per cent of its own-brand total turnover. The distribution of new lines is up 20 per cent, with some of these featuring in more than 1,800 stores.
The group is reporting growth in store numbers, with 40 new stores joining in the first quarter and the introduction of a more diverse and bigger footprint store format called Eurospar, with the group taking advantage of some abandoned Woolworths outlets and “opportunities that [have] arisen from the Somerfield/Co-op merger”.
New packaging has also been used as an effective communications tool, but the retailer believes that its 50 per cent year-on-year increase in investment in TV, radio, national press and digital advertising has also been a successful and comprehensive approach in getting its message across to the consumer.
Jerry Marwood, Spar UK managing director, said that the latest figures are very positive compared to most industry benchmarks, with a continued optimistic outlook for the months ahead.
He said: “The latest statistics demonstrate the inherent strength of the convenience market and confirm that within that, Spar has developed a robust programme. The past few months have provided us with a good opportunity to reiterate our strong value message.
“Grocery sales continue to show robust growth with promotional activity resulting in an increase of 22 per cent in promoted items over the same period last year. We have introduced, for the first time, a lunchtime Meal Deal… we feel (and its seems our customers agree with us) that we're offering a great promotion.
“Simultaneously, we are fostering our store development plans which have seen great investment in store refurbishment and modernisation.”
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