Liquor and drugs boost Spar’s sales
The grocery chain’s Swiss customers preferred to shop in cheaper neighbouring countries, but Ireland did well
Ireland was JSE-listed Spar’s best performing region, helping to offset sales and profit declines in Switzerland. The Southern African division of retail multinational Spar expanded geographically by acquiring 80% of Ireland’s BWG Group for €55m (about R800m) in 2014 and 60% of Spar Switzerland for Sf44.5m (about R690m) in 2016. The group reported its overall turnover grew 6% to R103bn in the year to end-September. Its 2,236 stores in Southern Africa contributed 67% of the group’s turnover and 75% of its pretax profit. Revenue in its home market grew 6.7%, but pretax profit declined 4.8%. Ireland, where Spar ended the reporting period with 1,371 stores, contributed 22% of both turnover and pretax profit. Its Irish division grew turnover 9.6% and pretax profit by 15.5%. Its 315 stores in Switzerland remain a headache, with sales declining 5.3% and pretax profit down by 10.4%. Swiss retailers suffer as the country does not use the euro and many of their customers have easy access to c...
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