1 / 12

SPAR

SPAR. Operational Structure. A voluntary trading group. S tores owned and run by SPAR members, supplied and serviced by regional Distribution Centres, owned by SPAR SA. 6 DC’s are owned and run by SPAR and provide leadership and expertise to retail members.

arnold
Download Presentation

SPAR

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. SPAR

  2. Operational Structure A voluntary trading group. Stores owned and run by SPAR members, supplied and serviced by regional Distribution Centres, owned by SPAR SA 6 DC’s are owned and run by SPAR and provide leadership and expertise to retail members. Each DC managed autonomously as a profit centre by an Executive Mgt team Decisions made by Group Services do not have to be implemented at DC level Spar do not own any stores!

  3. Channel / Formats SPAR Stores

  4. Store Distribution – South Africa Botswana incl with N.Rand, Namibia incl with W.Cape Source : SPAR July 2009

  5. Core competencies A finely tuned logistics and distribution operation Exceptional brand management and support capacity for members ensuring a consistent message over a wide range of store formats and consumer markets Brand appeal and consistent brand message across LSMs 1-10 Exceptional reach into SAs full range of markets (LSM 1-10) through the flexibility built into the Retailer Member model E.g. : SPAR Thohoyandou sells 5 tons of chicken feet a day Ongoing store refurbishment/ modernisation programme (20% stores per year)

  6. Group Financial Performance Strong growth for the past three years with excellent performance at retail *Note: CPIX was re-weighted at the end of 2008. 2009 figure is CPI Actual gross margin declined by 0,2% attributed by SPAR to a change in the sales mix (DC sales versus drop shipment), and the competitive trading environment

  7. Strategic Drivers 1. The SPAR Brand : “Good For You” The Objective: To make SPAR the first choice food store that appeals to all South Africans no matter where they live, what ethnic group they belong to, their gender, their age or their spending power • Young, modern and energetic. • Focus on offering an unforgettable shopping experience • The principle : Life is full of great moments and shopping at SPAR is one of them

  8. Shopper Communication > Inside the Store 2. The Store Experience: The Re-Mix Programme The store remodel programme > ‘Re-Mix’ and ‘Let’s Entertain’ strategy Target extension and modernisation of 20% of stores p.a 129 stores in 2007 / 144 in 2008 SUPERSPAR, Glenwood, KwaZulu Natal – Feb 09

  9. Strategic Drivers 4. Private Label SPAR driving Private Label very aggressively at the shop shelf and in consumer communication. A critical means of improving SPAR trading margin!

  10. Strategic Drivers 5. Convenience Focus on high margin specialist service departments, fresh and HMR’s Be aware of pressure on grocery allocation > store level contact critical

  11. Strategic Drivers 6. Emerging Market Continued drive into emerging markets with 105 emerging market stores to date Growing at a significant rate > Greenfields territory, and not an easy win – SPAR model ideal

  12. Strategic Drivers 7. Improved Operational Efficiencies : Distribution R1bn spent in upgrading facilities ever last 3 years

More Related