South African grocer SPAR to open first upmarket store in second quarter (updated)

Spar

28/11/2024 16:55

(Recasts with CEO comment on upmarket store)
    By Nqobile Dludla
       JOHANNESBURG, Nov 28 (Reuters) - South Africa's SPAR
Group  SPPJ.J  plans to open its first premium grocery store in
the second quarter of next year, with up to four stores planned
for the year as the retailer targets affluent shoppers. 
    South African grocery retailers have been refining their
strategies to appeal to both affluent and low-income customers,
to gain a bigger share of customers' wallets.
    They are also moving into new non-food areas by opening
standalone stores for products such as pet and baby supplies,
clothing and outdoor adventure products, to diversify and
generate additional income.
    "We're on track to launch in the first half of next year, it
might be just after Easter," SPAR Group's CEO, Angelo Swartz,
told Reuters on Thursday, having set out the plan in March. "The
launch will initially be one store, although we have three or
four planned for the year."
    The retailer, which also operates in Ireland and
Switzerland, is expanding into the discount grocery market also,
through its revamped SaveMor store format.  
    South Africa's higher-margin, upmarket grocery niche is
dominated by Woolworths  WHLJ.J , while in the discount space,
Shoprite  SHPJ.J  has Usave, while Pick n Pay  PIKJ.J  has Boxer
 BOXJ.J .
    Earlier, SPAR reported an 11.1% rise in headline earnings
per share, the main profit measure in South Africa, to 917.9
cents for the year ended Sept. 30, while its SPAR Southern
Africa business reported a 3.7% increase in turnover.
    The company, which sold its loss-making Polish business in
September, did not declare a dividend for the year.
($1 = 18.2149 rand)

 (Additional reporting by Sfundo Parakozov; Editing by Himani
Sarkar and Elaine Hardcastle)
 ((Sfundo.Parakozov@thomsonreuters.com;))