South African retailer SPAR Group has reported double-digit growth in H1 across the European markets in which it has a presence, while turnover at a group level was up 7.5%, it said in a trading update.
According to a trading update issued by the retailer, its BWG Foods business, which features operations in Ireland and southwest England, reported turnover growth of 13.3% (in euro terms) in the six months to 31 March 2021, although the month itself saw a slowdown due to tough comparatives.
'All retail brands continued to perform strongly as consumers supported their neighbourhood stores during the extended lockdown as the country experienced its third wave of the pandemic,' the group said of its BWG Foods performance.
Its wholesale operation in Ireland was impacted by the prolonged closure of hospitality and foodservice businesses, however.
Swiss Performance
In Switzerland, meanwhile, sales were up 11.1% in CHF-denominated terms in the half-year period, with its operation benefiting from increased shopping at local stores due to pandemic restrictions.
The group recently announced the acquisition of the Store Services AG business, including 60 forecourt stores in Switzerland, which 'positively impacted the wholesale business', SPAR Group said.
In Poland, turnover was up 32.2% (+26.9% in PLN-denominated terms), with the group instigating rescue proceedings on the former Piotr i Pawel business during the period, which is a 'significant step towards stabilising the business', it said.
Home Market
In Southern Africa, wholesale turnover for the half-year period was up 3.1%, while the core SPAR grocery business reported turnover of 0.8%, with inflation impacting its performance.
'The business has seen changing consumer behaviour over the past twelve months due to the pandemic,' the company said.
'It benefitted from increased home consumption with consumers choosing local, convenient and community-based SPAR stores during the initial strict lockdown. As lockdown measures were eased, consumers ventured back to restaurants as well as the larger shopping malls, where SPAR has low exposure, negatively impacting the business during this period.'
Its liquor business has been hit hard by lockdown restrictions, however, with its TOPS at SPAR retail business losing 72 trading days in the period due to a prolonged trading ban.
© 2021 European Supermarket Magazine. Article by Stephen Wynne-Jones. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
