Spar Scotland trading and supply director Della Myers said improving inbound availability should be the “number one priority” after poor service levels cost the group £5m in sales over the past three months.
Myers, who joined CJ Lang from Bestway three months ago, called on suppliers to work co-operatively with the wholesaler to boost availability across Spar Scotland’s stores.
Myers highlighted availability issues over the past 12 weeks as a challenge to current growth.
“We can’t sell what’s not on the shelves, so I am asking all our suppliers to work harder across the categories to drive growth,” she said, addressing suppliers at the wholesaler’s annual trade conference in Aviemore.
“Availability over the past 12 weeks was not ideal. We lost about £5m in sales that could have been fulfilled,” Myers told The Grocer.
Categories doing well included tobacco, beers and spirits, she said. But onboarding new suppliers, as well as challenges in production in the supply chain, were halting the group’s growth.
“From an opportunities and demand point of view, we have great growth projected. In some instances, such as food to go, demand has taken over supply. The Barista Bar meal deal is a brilliant example, we’ve seen volumes go off the cliff steadily two weeks after launch.
“At the end of the day, I want us to do the basics right. Improve communication with our suppliers, because there will always be challenges, but the only way we’re going to win is if we are in this together with the same goal,” she added.
Spar Scotland CEO Colin McLean said: “With our depots only at 60% capacity, there is a real opportunity to expand our availability and boost sales significantly”.
The Dundee-based wholesaler scooped The Grocer Gold Tech Innovation award earlier this year thanks to its AI stock management solutions in-store.
The tech, monitoring stock availability in stores helped boost product availability at Spar Crosshouse from 78% to 98%.
Weather was another obstacle for Spar Scotland this year, with only six days of sunshine in summer 2024 affecting sales negatively. ”When the weather is good, our sales soar, and this year hasn’t been particularly kind,” said stores director Frank McCarron.
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