Spar must acquire more stores if it is to eliminate the price advantage suppliers give to multiple competitors, who are now entering the convenience arena in force, said Spar UK chairman Peter Blakemore.
Speaking at the Central Meridian Spar Guild retail conference in Torquay, Blakemore said: "Over the next five years we are going to see a tremendous race for sites and we have to compete for the good stores coming up on the market. We need more stores in Spar if we are to remain unbeatable in future."
Retailers were urged to alert AF Blakemore the largest UK Spar wholesaler with 707 stores and a turnover approaching £500m to any stores likely to come up on the market.
"If you know of any one who wants to sell," said Blakemore. "Tell us. Every one sold to the competition adds to their negotiating power and detracts from ours." Blakemore retail director Elwyn Davies said Blakemore's company-owned stores division Tates had already identified targets but it was too early to relay further details.
While Blakemore's performance over the year has been extremely encouraging, with like for like sales up 4.3%, there is no room for complacency, he warned. There will be "zero tolerance" for members failing to address problems in ranging, IT, financial controls, fresh foods and new formats, said Davies.
"Why is there so much resistance to the Millennium Store format? I feel so confident [in the sales uplift for members converting to the format] that I might even consider guaranteeing the figures."
All stores must review ranges and remove slow sellers, he added. "Too many stores have yesterday's brands."
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