CHRIS GILMOUR: Spar’s diversified regions infuse a nice rand-hedge flavour to the stock
Spar’s strategy of seeking growth outside SA has paid off, but weakness in the rand has not been fully reflected in recent results
Having a March interim period means that Spar’s reporting includes one trading month affected by the coronavirus pandemic. Most other fast-moving goods retailers that have reported thus far have not included this important month.
Locally, the food distribution element of Spar’s southern African operations did well in the run-up to the coronavirus-related lockdown, as consumers stocked up in advance of the event. During March, however, its liquor chain, Tops, was unable to trade during the first few days of level 5 lockdown, as was its DIY chain, BuildIt.