CJ Lang has posted a 14.2% rise in turnover to £253m for the year ending 28 April 2024, as the Spar wholesaler invested in technology, logistics, and bringing new stores to the business.
The Dundee-based wholesaler, which also grew pre-tax profits by 8% to £4m, acquired 12 new company-owned stores over the past year, bringing it to 115 overall.
They comprised three former Eddy’s Food Station stores located in Larbert, Greenock and Leuchars. CJ Lang bought the stores after Eddy’s Food Station collapsed into administration in April.
The wholesaler also acquired independent convenience chain ScotFresh, which consisted of nine stores, in October last year. All 12 sites are expected to convert to the new Spar branding by Christmas, CEO Colin McLean told The Grocer.
CJ Lang has continued to invest in technology across its estate as well, including the implementation of electronic shelf labels to “modernise the customer shopping experience”. The rollout across its company-owned stores will finish by the end of the year, with its independent estate also adopting the technology.
There has also been significant investment in vehicles, equipment and forecasting and demand planning systems to improve customer availability. The latter was in partnership with Relex in a bid to upgrade its in-store and depot ordering system.
“Our availability continues to outperform the market in Scotland,” said McLean. “We need the stock, brands, and support to ensure we get fair share.”
Food to go is contributing to driving footfall in store, and has replaced “newspapers, magazines and cigarettes” as a reason to visit “as their sales decline”, said McLean.
Contributing to the success of food to go is Barista Bar’s exclusive offer to Spar in Scotland, with the brand, launched last year, having already outperformed Spar’s previous coffee-to-go operator Costa by 25%.
Barista’s hot food meal deal offer, consisting of a £2.99 option for breakfast and £1.99 for lunch, created an occasion “to pop both in the morning or at lunchtime”, McLean added.
The breakfast meal deal, consisting of coffee and a bacon roll, launched five weeks ago, and has already doubled sales since.
McLean added: “We have delivered robust growth over the last 12 months and achieved another year of strong sales and profits. However, this year the summer was against us and the year ahead presents challenges we must be prepared for.
“Rising operational costs, combined with changing consumer habits and supply chain unpredictability, are critical factors that will continue to shape the year ahead.
“We have had another strong year but we cannot rest on our laurels. As a genuinely Scottish family-based business, we are well positioned to continue our journey to meet the needs and support of our customers with the best that Spar Scotland can offer.”
“Our stores serve communities of all sizes across Scotland; our customers are our neighbours. I would like to thank them, along with our suppliers, independent retailers and all our colleagues, for their continued support.”
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