Growing the SPAR Brand in China

November 20, 2024 IN THE CATEGORY: Feature articles, Store openings, Supply Chain

The SPAR Brand was introduced into the Chinese market in 2004 with the signing of the license agreement for the Shandong province. Today, two lead partners are driving the growth of the SPAR Brand through multi-format retailing and a robust supply chain.

SPAR Shandong & SPAR Guangdong

In China, the rights to the SPAR Brand has been granted to SPAR Shandong (part of Jiajiayue Holding Group) operating in the North of the country, and SPAR Guangdong (part of Guangdong Jiarong Supermarket Co Ltd) operating in the South of the country. SPAR Shandong currently has over 1,000 stores, with more than 230 featuring the SPAR Brand, located in 60 cities. Furthermore, SPAR Guangdong has more than 130 SPAR branded stores located in 10 cities across the province.

There are more than 340 SPAR Branded stores located in the country, with a multi-format retail strategy bringing the brand to new shoppers. In total, SPAR China generated total retail sales of over €1 billion in 2023, based on constant currency values. SPAR in China is recognised as one of the top 25 supermarkets in both the North and South of the country by the CCFA (China Chainstore Franchise Association).

Enhanced instore experience

The growth of the SPAR Brand in China has been built through consistent store development and modernisation. The stores focus on providing an exceptional shopping experience for customers, being a one-stop-shop location where a range of high-quality local and international products are available at affordable prices. Depending on store size, consumers can choose from the extensive assortment, including locally sourced fresh produce, food-to-go options, grocery essentials, health and beauty, off license, and household products.

The SPAR Branded stores are designed based on international SPAR guidelines, incorporating features such as spacious aisles, diverse product displays, dedicated departments, and an enhanced use of colour and lighting. Technology is also incorporated throughout, including automated self-checkouts, electronic shelf-edge labels, digital screens, and advanced scales. Online delivery solutions are available for customers in selected locations throughout the country.

Earlier this year, SPAR Shandong opened a world class ‘Hops On’ SPAR Hypermarket in Beijing, which you can read more in-depth about here. This ‘Hops On’ store design, developed in collaboration with SPAR International, presents a modern and innovative layout with learnings from this store being used in the roll out into new and modernised stores across Beijing and the Shandong regions.

In the South, SPAR Guangdong has completed a variety of store refurbishments in the last 12 months as well as increasing the SPAR Brand presence and setting new store standards in the region. These modernisations enhance the customer experience through the introduction of new concepts, improvements to current offers and in product assortments. SPAR Guangdong has been recognised by the government through awards for providing exceptional quality and service to local communities.

Growth through the supply chain

A core tenet of the development of the SPAR Brand in China has been the establishment of a modern supply chain with a focus on delivering responsive replenishment with the freshest products to stores. Since 2008, SPAR Shandong has established a hub and bespoke supply chain network with 16 warehouses supplying fruit & vegetables, chilled products, frozen products and a full range of grocery and snacking products across six regions, Shangdong, Beijing, Hebei, Inner Mongolia, Anhui, Jiangsu.

Maximising the freshness is a key focus for SPAR Shandong which operates 6 central kitchens and multiple food production facilities, supplying stores with the highest quality and freshest products. This is closely managed throughout the whole end-to- end supply chain and supported by a  robust local sourcing programme targeted at procuring high-quality produce.

SPAR Guangdong operates a central warehouse and has production facilities in Dongguan.  The team focus on working directly with farmers to source fruit & vegetables of the highest quality, delivered to the stores across Guangdong, Dongguan, Mao Ming, Meizhou, Shaoguan provinces daily. Chilled, frozen and grocery products deliveries are coordinated through the Dongguan warehouse with deliveries consolidated to maximise on shelf customer availability as the lowest end to end operating costs.

Source: SPAR China

Read more about SPAR China


About SPAR China

SPAR was introduced to China in 2004 with the signing of the license agreement for Shandong province, followed by the addition of more partners. The privately-owned retail chains licensed to operate SPAR have a cooperative relationship. As a result, this partnership aligns with the original SPAR mission of working together to reduce costs, maximise sales, and increase profits.

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