SPAR cushioned by home renovators

Published Date: 2021-02-17 | Source: Stephen Gunnion | Author: Stephen Gunnion

The wholesale and distribution group has reported flat grocery sales in SA but a big increase in turnover from its Build it chain.

SPAR Group's DIY and hardware business has delivered a strong performance for the first four months of its financial year, making up for weak growth at its local grocery business and the loss of liquor sales.

In a trading update for the 18 weeks to 29 January, the wholesale and distribution group said Build it grew sales by 25.6% as demand for building materials remained strong, driven by investment in home improvements as consumers spent more time at home due to the pandemic. Its core grocery business increased sales by 2.8% and like-for-like sales rose 2.5%. It increased prices by an average 5.1% over the period. Alcohol sales declined by 17.9%.

For the group as a whole, sales increased by 9.8% to R43 billion, with its BWG business in Ireland growing turnover by 4.3% in euro and SPAR Switzerland achieving turnover growth of 13.8% in Swiss francs. SPAR Poland's turnover grew by 38.1% due to increased support from SPAR retailers, despite ongoing lockdown measures and the challenges faced while developing the new business.

SPAR's interim results for the six months to end-March are scheduled for release on 19 May. Its shares fell 7.4% to R195.99 yesterday.