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SPAR Denmark parent company Dagrofa Group invests in store network expansion

February 9, 2022 IN THE CATEGORY: Store openings

  • Esben Keller, Dagrofa’s Director of the chains SPAR, Min Købmand and Let-Køb

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SPAR Denmark parent company Dagrofa Group has announced it will invest DKK 450 million (over €60,46 million) over the next three years into three of its retail chains, including SPAR. Included in the plans are new corporate stores and a new retailer model to attract more independent retailers. Core to the new license model will be shared earnings with retailers, with a view to supporting retail development.

According to Esben Keller, Dagrofa’s Director of the chains SPAR, Min Købmand and Let-Køb, all three chains experienced growth during the pandemic, with SPAR increasing its market share.

“We have grown in revenue and market share, which puts us in a good starting position to launch the new strategy”, he said.

New retailer model

The Group’s focus on local stores is a result of changes in the retail space following the COVID-19 pandemic.

“I joined Dagrofa in April 2021, in the middle of the pandemic, which called for a completely new business model and a new way of connecting with customers. There has been a strong movement towards local shopping, which benefits local grocery retailers. We will emerge stronger from the corona crisis, but it requires changes in the business model”, he said.

The new model makes it more attractive for independent retailers to join by providing retailers financial and other support.

“This year, the model will be tested in one store at a time, allowing for adaptation before being finalised. Independent grocery stores are a priority, and we see opportunities for growth through this model,” said Esben Keller.

Enhancing customer experience

In 2022, strengthening the customer experience and continuing the modernisation of stores is on the agenda. SPAR Denmark experienced a major boost in 2021 through product range development and by opening city-centre stores.

“This year, we will invest in the roll-out of the SPAR Natural concept, created by SPAR International. The range focuses on eco and allergy-friendly products, categories that are becoming increasingly popular”, said Esben Keller.

The SPAR Natural concept has already been implemented in eight SPAR stores around the country. This concept offers customers products from the Danish market they are familiar with, as well as products sourced from SPAR International.

The Group will also continue to invest in digitalisation in 2022, complementing the ongoing expansion and enhancing customer experience investments.

Interested retailers can find more information on the new retailer model here.

Source: fodevarewatch.dk

Read more news from SPAR Denmark.


About SPAR Denmark

SPAR Denmark was founded in 1954 when Danish retail company, Dagrofa, was granted a licence to operate the brand in the market. In 2013, NorgesGruppen purchased 49% of the Dagrofa Group. This led to a major restructuring of the retail business, strengthening the SPAR Brand in Denmark.

SPAR Denmark has more than 130 supermarkets spread across the country, positioning itself as the largest independent retail chain in the market. Its headquarters are in Ringsted. Over the past years, SPAR Denmark has implemented a robust expansion plan to open new stores in the capital city and larger cities nationwide.