Tag: year-end results

Big changes coming to Spar stores

Source: Supermarket & Retailer

Retail group Spar has warned of increased inflationary pressures in the coming months, with consumers expected to remain under financial strain as the cost of living increases.

In its interim financial results published on Wednesday 8 June, the group said it plans to address this by increasing its promotional calendar for the period ahead to continue to attract cash-strapped consumers.

The group is also planning to revamp its fresh food offering – including fresh produce, butchery, bakery and home meal replacement.

Liquor sales are also expected to rebound in the absence of further pandemic-related liquor trading restrictions, the group said.

Spar also plans to fully stake its claim in the online shopping space in the coming months as it ramps up the rollout of its new online shopping platform, SPAR2U. The e-commerce platform will deliver both groceries and liquor, with the service already being piloted in some stores.

“There is great enthusiasm from our independent retailers to implement SPAR’s new online shopping platform, SPAR2U. Our online platform is receiving positive reviews and a large number of stores are preparing to launch online within their communities in the coming months,” the group said.

SPAR2U launches in a crowded online same-day delivery space – with Pick n Pay, Woolworths and Checkers all offering same-day delivery services. Checkers’ Sixty60 one-hour on-demand grocery delivery service launched in late 2019, just prior to the onset of the Covid-19 pandemic in early 2020.

Pick n pay acquired the Bottles app in October 2020, rebranding it to asap! in 2021. Woolworths launched its same-day service Woolies Dash in December 2020.

Financial results

Spar South Africa reported solid growth, with wholesale turnover increasing by 7.7% to R43.8 billion. Groupe operating profit increased to R1.83 billion (+7.1%), while headline earnings per share increased to 642.6 cents (+3.5%).

The core SPAR wholesale grocery business reported a meaningful recovery in sales growth of 4.6%, assisted by increased marketing initiatives at retail, and unrestricted liquor trading, which drove increased footfall to Spar stores.

Core business trading continued to be impacted by the stores which were closed due to the civil unrest in July 2021. At the end of the period, 13 Spar format stores and nine Tops at Spar stores remained closed.

Following the lifting of the Covid-19 nationwide liquor trading bans in September 2021, TOPS at SPAR made a strong recovery, increasing turnover by 41.6% for the period. On a combined basis, wholesale grocery and liquor turnover increased by 8.5% for the period.


Massmart’s shares fall

The share price of Wallmart’s South African subsidiary Massmart fell 4.4% to R111 on Tuesday morning after it reported overall sales growth excluding new stores failed to keep pace with inflation.

Massmart reported sales for the 44 weeks to October 30 excluding new stores was 5.3%, lagging behind product inflation of 6.4%.

Including new stores, sales grew 7.6% to R73.2bn from matching 44 weeks in 2015.

“Sales growth has declined, reflective of the tough trading conditions in SA and, more recently, in most African countries where we have stores,” the company said in its sales update on Tuesday.

“Although slowing marginally food and liquor sales continued to perform well and Massbuild is showing signs of a sales recovery. General merchandise sales remain compromised by low consumer confidence, drought-affected food inflation and higher-priced imported products.”

Massmart splits itself into four divisions.

Fastest sales growth of 10.7% was reported by Masswarehouse which houses the Makro and Fruitspot chains. Excluding new stores, sales growth was 7.5%.

Next was Masscash whose brands include Jumbo, Shield, CBW, Rhino Cash & Carry, Tridant, Saverite and Cambridge Food. It increased by 7.9%. It appears to have closed numerous outlets since same-store sales growth was 8.5%.

Massbuild — which houses Builders Warehouse, Builders Express, Builders Superstore and Builders Trade Depot — grew sales 5.7%. Excluding new stores, sales growth was a more muted 1.1%.

Game and DionWired division Massdiscounters increased sales by 4.6%, but only by 0.5% when excluding new stores.

By Robert Laing for www.businesslive.co.za

Stabilo has announced its year-end results, showing that 2016  was the most successful year in the company’s history.

Highlights of the results include:

  • Year-on-year sales increased by €100-million;
  • For first time, all three subgroups exhibited strong growth
  • The number of employees rose by almost 10%: there are now over 5 100 worldwide (2 232 of which are in Germany).

In the 2015/16 fiscal year the Schwan-Stabilo Group generated the highest turnover in over 160 years of the company’s history.

At the press briefing on the annual results on 19 October, the group management presented the results.
In just one year, turnover rose by more than €100-million to €706.7-million. This is a year-on-year increase of 18%.
All three subgroups (cosmetics, writing instruments and outdoor) contributed to this with strong growth.

MD Jörg Karas explains this extraordinary success: “We have made optimum use of our opportunities. For cosmetics, this meant generic growth in many product areas. For Stabilo, the market gave the otherwise slowly growing sector a strong boost, first and foremost thanks to the global adult colouring trend.

“And despite the rather stagnant development in many outdoor markets, we ensured additional stimulus by acquiring the Maier Sports group.”

Sebastian Schwanhäusser, executive shareholder, is correspondingly optimistic about the future.

“This extraordinary result has set the bar very high for the coming fiscal year. But ambitious goals motivate us, too. We are well prepared for the future.”

The company is also on firm financial footing.

Martin Reim, chief financial officer, says: “We will also continue to invest heavily in our future in order to remain on this successful course. This is the best strategy in this time of negative interest rates.”

Stabilo results
The company profited from the adult colouring trend, which is still ongoing today, and was able to successfully establish two start-ups focusing on the topic of “learning to write”.
The company introduced our Digi pen at the InsightsX fair lately. Furthermore, a new series of books from “Stabilo Education” has been produced to support four to eight-year-olds in training their graphomotor skills through play.

“Stabilo was quick to take advantage of the adult colouring trend,” says Schwanhäusser.
“Our colouring book launched together with pens became one of our bestsellers. With the ‘digi-vision’ and ‘Stabilo Education’ divisions Stabilo was able to make its mark successfully in the education sector.”

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