Convenience store group Spar has reported a like-for-like sales rise of 4.8% for the three months to 31 October 2009.
The retailer increased total sales by 8% during the quarter.
Spar said the results showed the resilience and adaptability of the company’s business model in tough economic conditions.
Jerry Marwood, Spar UK managing director, said the results were testament to how Spar retailers were making changes to ensure they were following customer trends in challenging times.
“Spar retailers are true entrepreneurs, finding opportunities everywhere,” he said. “Our retailers are constantly adapting their businesses to respond to changing consumer needs and it’s clear that in the current market place the faster one can move the bigger the opportunity.”
The confectionery category showed Spar’s largest sales increase last quarter, with a 10% hike suggesting that some of the Woolworths business had stayed in local communities, while grocery
(8.5% increase), fresh (up 5%) and frozen (5% increase) were other sectors performing well.
“Customers are obviously talking about price and are reading promotional leaflets a lot more than they were. They have cultivated a bargain-hunting approach – making weekly budgets and shopping lists and shopping around to different stores to get the deals they want” Marwood said.
Spar branded products continued to grow with 50% of brand sales within the fresh category.
“Our stores no longer just depend on selling tobacco and the old convenience model is changing,” Marwood said. “That means we are becoming established for selling in more complex categories such as fruit, vegetables and meat.
“Independent local retailers will have an important place in the lives of customers in 2010. They are the entrepreneurs, employers, innovators and a route to market for vital goods and services as well as understanding customers and fulfilling their varying daily needs.” said Marwood.
