DESPAR Italia, a consortium of six member companies that operate the SPAR Brand across the country, has released its results for 2016 and announced an ambitious expansion plan for the year ahead.

Retail sales grew by 4% in 2016, to 3.28 billion euros. This growth was supported by an expansion of the store network by 2.5%, to 1,159 stores, paired with an increase in the number of employees with 1,119 new hires. SPAR is one of the 10 major retail brands in Italy and in 2016, it was one of five retail chains that achieved like-for-like growth.

The investment plan for 2017 amounts to 200 million Euros. These funds are aimed at opening new stores, renovating existing ones and creating the necessary infrastructure to reflect the latest retail standards.

“Our group is staying within the successful parameters that we have enjoyed for some time now, and keeps investing at a local level,” said Paul Klotz, President of DESPAR Italia. “We have decided to strengthen our momentum by opening new stores and investing in our people: staff numbers grew by almost 10% to more than 13,700 employees, who contribute every day to the success of our brand.”

Own Brand is a pivotal area for DESPAR Italia, representing more than 18% of retail sales in 2016. The group aims to achieve a 19% growth in own brand in 2017.

“Our results are confirming the success of our own brand, showing that customers appreciate the quality and range of our products,” added DESPAR Italia Managing Director, Lucio Fochesato. “In 2016 alone we updated more than 160 product recipes and we have introduced formats and products to the market that meet new consumer needs and lifestyles.”

DESPAR Italia’s Own Brand range comprises more than 2,700 SKUs with 225 new products launched in 2016. This year, the company plans to introduce 290 more new own brand SKUs, mostly in the premium, health, organic and locally sourced categories. The own brand share of retail sales is expected to increase by 6.5%.

The six SPAR member companies in Italy are: Aspiag Service, Ergon, Fiorino, Maiora, L’Alco Grandi Magazzini and SCS.