Spar makes the most of tough times
May 06 2009
Retail Wrap >>

Despite the current economic turmoil and consumers' shrinking disposable income, the Spar Group performed well, the listed grocery distributor said on Tuesday. Spar was releasing its interim results for the six months ended March 31, 2009.

Chief executive officer Wayne Hook attributed the company's good sales to a combination of growth at existing stores; aggressive promotional activity; new store openings and the lingering effects of higher food inflation. "All of the above helped to ensure that we maintained a consistent level of turnover growth in spite of the clearly weakening economy," he said.

For the period under review, turnover was up 24.5 percent - slightly ahead of the turnover growth for the first half of 2008 - to R16 billion. Operating profit was 22 percent higher at R605 million and headline earnings per share came in 20.5 percent higher at 242.5 cents a share. 

However, Hook anticipated that turnover would decline in the second half as a result of "the deteriorating economy and an anticipated decline in food price inflation". However, he said Spar would continue with its robust expansion programme.

Adapted from source: www.busrep.co.za, 5 May 2009.