Spar has credited a strong sales uplift to the rise of local shopping coupled with a recession-driven revamp of its own-label range and advertising strategy.
Sales shot up 8.1% in the three months to the end of June, with like-for-like sales up 5.2%. The recession had benefited the 2,500 stores trading under the Spar fascia by encouraging more consumers to shop locally and to seek out good-value products, said MD Jerry Marwood.
Spar had added 250 new products to its own-label ranges and redesigned its packaging, which had attracted consumers looking for cheaper alternatives to brands. "The past few months have provided us with a good opportunity to reiterate our strong value message," he said.
The retailer also increased its advertising budget by 50% this year to fund television, radio and national press ads, which had also boosted sales. Some 40 stores joined the fascia in the period.
Promotions were playing an increasingly important role in Spar's offer, said Marwood, citing the recently introduced £2 Meal Deal, which includes a sandwich, crisps and a drink.
However, at Capper & Co, Spar's wholesaler in south Wales and the south east of England, pre-tax profits fell 46% to £3m in the year ending April 2009, while turnover rose 3.3% to £283m. It admitted margins had been squeezed by the increasingly competitive market and investment in new stores.
At Scottish Spar retailer Botterills Convenience Stores, pre-tax profits fell 19% to £696,000, while turnover rose 4.2% to £77m in the year to May. It blamed poor weather and competition from discounters.
Sales shot up 8.1% in the three months to the end of June, with like-for-like sales up 5.2%. The recession had benefited the 2,500 stores trading under the Spar fascia by encouraging more consumers to shop locally and to seek out good-value products, said MD Jerry Marwood.
Spar had added 250 new products to its own-label ranges and redesigned its packaging, which had attracted consumers looking for cheaper alternatives to brands. "The past few months have provided us with a good opportunity to reiterate our strong value message," he said.
The retailer also increased its advertising budget by 50% this year to fund television, radio and national press ads, which had also boosted sales. Some 40 stores joined the fascia in the period.
Promotions were playing an increasingly important role in Spar's offer, said Marwood, citing the recently introduced £2 Meal Deal, which includes a sandwich, crisps and a drink.
However, at Capper & Co, Spar's wholesaler in south Wales and the south east of England, pre-tax profits fell 46% to £3m in the year ending April 2009, while turnover rose 3.3% to £283m. It admitted margins had been squeezed by the increasingly competitive market and investment in new stores.
At Scottish Spar retailer Botterills Convenience Stores, pre-tax profits fell 19% to £696,000, while turnover rose 4.2% to £77m in the year to May. It blamed poor weather and competition from discounters.
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