Celebrating expansion of the SPAR retail network

September 9, 2024 IN THE CATEGORY: Feature articles, Store openings

Over its nearly century-long history, the SPAR Brand has grown from a small group of grocers to an international food retail network. A well-developed multi-format retail strategy enables licensed SPAR branded stores to meet the varied needs of millions of customers each day.

The driving force behind the SPAR Brand’s success has been the close collaboration between wholesalers and retailers, with a view to supporting retailers integrate into their local communities. In the past decade, the brand has grown its presence through new market entries, including Georgia and Azerbaijan in the Caucuses and three markets in Central Asia. 

Brand presence in the Caucuses

SPAR Georgia celebrates its 10th anniversary in September 2024, marking the introduction of the brand to the market in September 2014 by the operating company Foodmart. By initially building up brand awareness through company-owned stores, SPAR Georgia created opportunities for a career in retail within the company, before strengthening the presence of independent retailers’ by granting sub-licenses to operate the brand. SPAR Georgia places a strong emphasis on fresh food production, evolving its supply chain, and establishing a multi-format strategy to meet shoppers’ needs at different times of the day. All of these strategies have contributed to achieving 12% market share as of May 2024, building up during the preceding ten years. Today, SPAR Georgia employs over 5,000 people with a combination of independently owned and company-owned stores across the country totalling 600 with a retail footprint of 67,000m2 

With the recent strengthening of the SPAR Brand in Azerbaijan, shoppers are increasingly able to shop in SPAR Supermarkets. The SPAR licence partner in this country, Araz, operates a combination of SPAR Express convenience stores and SPAR Supermarkets. Since opening the first store in December 2015, the network has grown to over 54 SPAR stores, bringing global best practice to the market and delivering a new offering with a focus on fresh. Having developed brand awareness with consumers in the market, SPAR Azerbaijan is able to increase the retail network across the country by granting licenses to independent retailers to operate the brand.  

Continued growth

Having seen the evolution of the SPAR Brand, retail companies keen to operate the internationally renowned brand were granted licenses for the markets of Kazakhstan, Kyrgyzstan, and Uzbekistan.  

In September 2023, the first EUROSPAR Supermarket opened in Almaty, operated by Skif Trade LLP, the license partner for Kazakhstan. Modelled on international best practice seen within the SPAR global retail network, the 4 SPAR Supermarkets and 2 EUROSPAR Supermarkets in Almaty and Astana bring high-quality stores in which the assortment is tailored to suit customers’ needs. Customers of these EUROSPAR Supermarkets enjoy access to an extensive selection of food-to-go items while fresh departments supplement the offering. SPAR Kazakhstan continues to expand and the SPAR multi-format retailing strategy, which has supported the brand’s expansion around the world, is integral to SPAR Kazakhstan’s ongoing growth programme.  

The SPAR Brand continued to grow in the region with a license granted to the Umai Group for the market of Kyrgyzstan, based on the successful introduction in Kazakhstan. The brand was introduced to customers in this market with the opening of a store in Bishkek in the middle of 2023. A key feature of the company-owned stores is the ready-to-eat counters, featuring well-known local foods made with natural ingredients and showcased through open cooking stations. Three SPAR Supermarkets in Bishkek and one SPAR Supermarket in Balykchy offer shoppers an exclusive SPAR Own Brand range of products, baked treats, locally procured products, and an excellent selection of fresh foods.  

Utilising both international best practice and learnings from these nearby markets, plans are in place to introduce the brand to residents of Uzbekistan. The SPAR Brand partner for the market, Korzinka, was granted a license in 2023, and work on the brand’s roll-out is ongoing with plans to embrace our multi-format retail strategy to enhance market presence. As Uzbekistan’s largest retailer, Korzinka will not only develop SPAR Brand stores offering high retail standards but will also create new jobs and provide opportunities for a career in retailing to the next generation. 

 Sources: SPAR country organisations

Share article on LinkedIn