South Africa's Spar Group plans to open its first premium grocery store in the second quarter of next year, with up to four stores planned for the year as the retailer targets affluent shoppers.
Source: Reuters/Siphiwe Sibeko
South African grocery retailers have been refining their strategies to appeal to both affluent and low-income customers, to gain a bigger share of customers' wallets.
They are also moving into new non-food areas by opening standalone stores for products such as pet and baby supplies, clothing and outdoor adventure products, to diversify and generate additional income.
"We're on track to launch in the first half of next year, it might be just after Easter," Spar Group's CEO, Angelo Swartz, told Reuters recently, having set out the plan in March. "The launch will initially be one store, although we have three or four planned for the year."
The retailer, which also operates in Ireland and Switzerland, is expanding into the discount grocery market also, through its revamped SaveMor store format.
South Africa's higher-margin, upmarket grocery niche is dominated by Woolworths, while in the discount space, Shoprite has Usave, while Pick n Pay has Boxer.
Earlier, Spar reported an 11.1% rise in headline earnings per share, the main profit measure in South Africa, to 917.9 cents for the year ended 30 September, while its Spar Southern Africa business reported a 3.7% increase in turnover.
The company, which sold its loss-making Polish business in September, did not declare a dividend for the year.
