Spar’s sales nudge €30bn on back of international expansion

FacebooktwitterredditpinterestlinkedinmailFacebooktwitterredditpinterestlinkedinmail
Spar: international expansion drives sales

Spar: international expansion drives sales

Spar’s worldwide sales grew 4.5% to €29.8bn in 2010, aided by aggressive expansion of stores into new countries and regions.

The results continue a positive sales performance with cumulative growth of 10.4% in the last two years.

Gordon Campbell, managing director of Spar International, said: “Our growth has been boosted by the success of our retail strategy, which focused last year on developing the larger Spar store formats – supermarkets and hypermarkets – into new and existing markets.”

Spar recorded two milestones in the past year: it opened its first hypermarket in China’s capital Beijing opened in September 2010, and the first Spar hypermarket in Delhi, India, in January 2011.

“The Spar hypermarket is now the fastest growing retail format in new and emerging markets, with 285 Interspar and Spar hypermarkets now producing 14.3% of worldwide retail sales,” said Campbell.

“The introduction of Europspar to Ireland, Belgium, Norway, Switzerland and Denmark has been a major growth factor during the recession,” he said.

The emphasis on larger store formats has led to a 7.5% increase in the average Spar store size this year, to 519sq m.

Spar said a number of countries saw exceptional results in 2010.

Spar Austria’s turnover grew by 4.5% to €5.1bn, while sales in South Africa increased to €4.5bn, up by 11.7%. Both countries outperformed their wider retail markets and gained market share throughout the year.

Growth in China also accelerated in 2010, said Spar. Sales rose by 60% to €405m and its sales area increased to 545,000sq m.

Spar Russia saw sales rise by 21% to €774m, thanks to the improvement in the Russian economy. The country also added 26 new Spar supermarkets to reach a total of 238.

“While aggressive global expansion has driven growth, a quick and flexible response to the financial crisis has also been a key factor in growing sales,” said Campbell.

“Spar worldwide delivered enhanced value to our customers and assisted them in coping with the demands of the recession throughout 2010.”