Spar ready to up its game

The Spar Group has joined the chorus of retailers highlighting challenging times ahead as new competitors emerged.

"We have to keep upping the game of our independent retailers," Spar CEO Wayne Hook said.

"We focus on upgrading stores. Opening new stores will also help our business.

"Retail is about basics - it's what you deliver on the floor every day - that's where the consumer measures everybody."

With the entry of global player Walmart through its 51% stake in Massmart, local players are rolling up their sleeves to defend market share.

Yesterday, Spar Group reported a 3.3% rise in full-year profit amid low levels of food inflation, dampened consumer spending and tough competition.

Diluted headline earnings per share were at 522.8c for the year ended in September, from 506.3c a year ago.

A final dividend of 235c per share was declared for a total dividend of 377c per share, up from the previous year's 362c.

Spar Group's turnover was up by 10.4% to R38.5-billion.

Its operating profit - at R1.4-billion - was 7.8% higher.

Turnover within the main Spar franchise increased by 8.6% to R31.9-billion.

The Spar Group will open up to 100 stores in the next financial year, it said.