SPAR continued its growth in 2019 with an increase of 4.35% in total revenue, achieving a global turnover of €37.1 billion. With an increase of 208 stores over the previous year at the end of 2019, SPAR currently operates 13,320 SPAR stores worldwide across four continents.
2019 marked the fourth year of our international SPAR: Better Together strategy. This strategy targets growth through maximising economies of scale by reaping the SPAR worldwide organisation’s global synergies, and fast-tracking innovations and development through a global network in 48 countries worldwide.
The total retail sales area increased to exceed 7.45 million square meters, driven by new store openings, as well as the expansion and modernisation of existing store networks.
Across the 16 countries that SPAR operates in Western Europe, SPAR had an exceptionally strong year as sales grew 3.57% compared to 2018, with total sales across the region of €22.9 billion, equating to 62% of our global turnover.
SPAR continued to expand its reach in Central and Eastern Europe with a growing presence in 12 countries across the region. Retail sales in 2019 from eleven markets grew by 6.83% to €6.19 billion.
Our 14 partners throughout Africa and the Middle East continue to strengthen their market positions in what, for some, can be challenging trading conditions. Overall SPAR maintained its growth trajectory with sales of €6.06 billion – a 5.26% increase on 2018.
SPAR consolidated its position across many of the markets it operates in Asia Pacific, with year-on-year growth in 2019 of 3.04% and retail sales of €1.94 billion when reported in Euros across the six countries.
The strength of our international network and growth in our distribution and supply chain operations have delivered significant competitive advantages for our stores and retailers, allowing agility and a speed of response to changing consumer and market trends.
SPAR Multi-Format Strategy
Our multi-format strategy encompasses hypermarkets, supermarkets, neighbourhood stores, convenience, and online retail. It strengthens our ability to provide adaptability and allows us to best meet the needs of the communities we serve worldwide.
200 - 1000 sqm
The local supermarket or neighbourhood store
1000 - 2500 sqm
The large supermarket aimed at fulfilling the needs of weekly family shopping
< 2500 sqm
Hypermarket format with up to 50% of sales surface in non-food
< 200 sqm
A distinct retail format responding to the convenience needs of today's consumer lifestyles
The four retail formats provide SPAR partners with the flexibility required to meet the collective needs of over 14 million customers around the world.
2020 marks the fifth year of the SPAR: Better Together strategy and the spirit and objectives of that strategy have never been more important or relevant. Launched in 2016, the strategy represents SPAR’s core ethos of uniting together the global scale and resources of the SPAR network so that all shall benefit.
The arrival of the COVID-19 pandemic, and the impact of the necessary restrictions on the movement of people, has presented our industry and society at large with an unprecedented set of challenges. The joint SPAR response to the pandemic has proven the true worth of the Better Together strategy – from procurement, buying, and supply chain to sharing strategies to help mitigate risk and prepare for the future.
The year ahead however will not be without its challenges. Economic impact, consumer confidence, and the negative impact on household incomes will see consumer spend shifting towards three key areas of health, sanitation, and value, with the SPAR Brand well positioned to respond.
The strong performance of neighbourhood retail during the outbreak and the importance our customers place in proximity and local retailing, will continue to strengthen, as will our continued roll out of online retail of both delivery and click-and-collect to serve our customer in what has been described as the new low-touch economy. Without doubt, one of the key learnings from the ongoing crisis is the essential and proven role that local proximity retailing plays as a critical lifeline for local communities.