Spar Switzerland fails to deliver on promise as sales tumble
The retailer sends its KwaZulu-Natal division MD to oversee the Swiss operation's retail offerings
Spar’s move into Switzerland — aimed at providing stability and growth to offset difficult local trading conditions — has not lived up to expectations yet with Swiss operations reporting mixed interim results. The South African grocery and wholesale group, which acquired 60% of its Swiss sister slightly more than a year ago, reported that like-for-like retail sales at Spar Switzerland declined 4.2% in local currency terms in the six months to March. It also incurred an operating loss of R8.3m in that operation. While deflation and a weaker Swiss economy conspired against the group, Spar CEO Graham O’Connor said there were factors within the retailer’s control that could be changed to turn that business around. "Trading conditions were a bit tougher than we anticipated in Switzerland," O’Connor said on Wednesday. "But we’ve made some changes and one of them has been appointing Rob Philipson to run the business. "This has been very well received and we anticipate a turnaround in the n...
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