CJ Lang has almost sealed its purchase of Spar retailer AM Landsburgh.
The Scottish Spar wholesaler this week confirmed it was in talks with the third-generation family business. CJ Lang will take on 10 Spar stores in Dundee and Fife for an undisclosed sum, upping its company-owned estate to 105 stores.
AM Landsburgh is a former Top 50 independent and turned over £9.8m in the year to 31 March 2010, with pre-tax profits of £20,132. In that year's accounts, director Gordon Landsburgh admitted "pressures of increased competition, increased costs and a slightly reduced footfall over the past couple of years".
The company took "the active decision to not just review and accept this added competition, but to meet it head-on with state-of-the art development and heightened importance on pricing and promotions," he added in the accounts.
News of the acquisition comes as CJ Lang extends its incentives package to recruit more retailers. It is offering up to £25,000 per store to help with the cost of conversion and free membership for the first year. The benefits package, which is also available to existing Spar members who add a store to their portfolio, was due to expire on 31 March.
Two retailers who currently operate rival fascias had signed up in the last fortnight, a spokesman for CJ Lang said. Conversions should be completed within four weeks.
CJ Lang's largest customer Botterills Convenience Stores, which operated 51 Spar stores was bought by Scotmid Co-operative Society last November.
The Scottish Spar wholesaler this week confirmed it was in talks with the third-generation family business. CJ Lang will take on 10 Spar stores in Dundee and Fife for an undisclosed sum, upping its company-owned estate to 105 stores.
AM Landsburgh is a former Top 50 independent and turned over £9.8m in the year to 31 March 2010, with pre-tax profits of £20,132. In that year's accounts, director Gordon Landsburgh admitted "pressures of increased competition, increased costs and a slightly reduced footfall over the past couple of years".
The company took "the active decision to not just review and accept this added competition, but to meet it head-on with state-of-the art development and heightened importance on pricing and promotions," he added in the accounts.
News of the acquisition comes as CJ Lang extends its incentives package to recruit more retailers. It is offering up to £25,000 per store to help with the cost of conversion and free membership for the first year. The benefits package, which is also available to existing Spar members who add a store to their portfolio, was due to expire on 31 March.
Two retailers who currently operate rival fascias had signed up in the last fortnight, a spokesman for CJ Lang said. Conversions should be completed within four weeks.
CJ Lang's largest customer Botterills Convenience Stores, which operated 51 Spar stores was bought by Scotmid Co-operative Society last November.
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