Spar International, the world's largest food retail voluntary chain, has announced global retail sales of €34.5 billion for full-year 2017.
The results represent an increase of 5.3% year on year on a constant currency basis.
In 2017, the chain saw a year-on-year growth of 232 stores, bringing Spar's total store count to 12,777 worldwide - equalling a sales space of more than 7.4 million square metres. Between 2016 and 2017, Spar added 600 new stores and an additional sales area of 500,000 metres square.
CEO Tobias Wasmuht commented on the results,"2017 was an extraordinary year of growth for Spar Worldwide, with sustained growth across all 48 markets where Spar operates."
"A key focus throughout 2017 has been to grow our presence through targeted expansion, and to drive retail development through expanding our multi-format retail strategy. Operationally we are stronger as a result of investments in the supply chain and are generating more value through better buying and leveraging our growing scale in procurement."
Global Results
During the year, Spar International entered five new markets in South Asia, the Middle East and Eastern Europe - Saudi Arabia, Pakistan, Belarus, Ukraine, and Qatar.
The retailer posted sales of €16.2 billion (+4% on 2016) in the Eurozone. Spar Austria boosted its domestic growth by 4.4%, largely due to a €650 million investment in operations. Other strong performers in the region included the Netherlands (+7.7%), Spain (+5.5%) and Ireland (+4.8%). In the UK, Spar's retail sales rose to €3.2 billion (+4% in local currency equivalent.)
Wasmuht explained, "In Europe, pan-European trends of smaller households, aging populations and urbanisation have contributed to a growth in smaller store format channels. We are witnessing a renaissance in modern neighbourhood retailing across the continent and the channel is continuing to grow in strength and importance."
In the Central and Eastern European regions, Spar experienced an 'outstanding year'. Combined sales amounted to €5.2 billion. Due to the acquisition of the Billa banner in Croatia, sales grew 59% in the country. In Russia, Spar said that it is continuing to gain market share due to robust like-for-like growth, as well as an 18.8% increase year on year.
In Africa and the Middle East, Spar's presence grew in 15 countries, posting 8.5% growth, which resulted in a consolidated regional turnover of €5.7 billion.
Spar is also now present in six countries in the Asia Pacific region, with its Spar China locations now equalling 408. Its Thai branch is now 'firmly established' in the market, with 30 stores opening in its first year of operations.
Tailored Approach
Wasmuht commented, "Spar’s ability to take a tailored approach to individual markets - be it adapting and evolving in existing markets or seamlessly integrating into new markets – sets it apart in the retail space."
"The outlook for 2018 and beyond is positive. As Spar grows internationally we create a continuous cycle of reinvesting that growth in resources which in turn makes us stronger and better together."
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up to ESM: European Supermarket Magazine.
