SPAR in South Africa: Local Profile, 2013 · ‘SPAR in South Africa: Local Profile, 2013’ is a...

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Company Profile

SPAR in South Africa: Local Profile, 2013

Reference Code: RT0249LP

Published: October 2013

©Conlumino 2013 | This product is licensed and is not to be photocopied or reproduced. 2



Table of Contents

1. Introduction ........................................................................................................................... 6

1.1 What is this Report About? .................................................................................................. 6

1.2 Scope .................................................................................................................................. 6

1.3 Methodology ........................................................................................................................ 6

2. SPAR South Africa – Company Profile .............................................................................. 8

2.1 Business Description ........................................................................................................... 8

2.2 Store Banners ..................................................................................................................... 9

2.3 Products ............................................................................................................................ 10

2.4 Services ............................................................................................................................. 10

3. SPAR South Africa – Key Information .............................................................................. 11

3.1 Financial Performance ...................................................................................................... 11

3.2 Operational Performance .................................................................................................. 12

3.2.1 Store Count ....................................................................................................................... 12

3.2.2 Sales per Store .................................................................................................................. 13

3.2.3 Sales per square meter ..................................................................................................... 14

3.3 Key Employees ................................................................................................................. 15

4. Regulatory Encironment .................................................................................................... 16

5. SPAR South Africa – Corporate strategy ......................................................................... 17

5.1 Physical Store Expansion Together with Enhanced Distribution Capacity ....................... 17

6. Competitive Environment .................................................................................................. 18

6.1 Key Hypermarkets, Supermarkets and Hard-Discounters; Convenience Stores and Gas Stations in

South Africa ................................................................................................................................. 18

6.2 Market Share of Key Hypermarkets, Supermarkets and Hard-Discounters; Convenience Stores and

Gas Stations in South Africa ....................................................................................................... 19

7. Investment and Expansion Plans of Competitors ........................................................... 20

7.1 Edcon ................................................................................................................................ 20

7.2 Mr Price ............................................................................................................................. 20

8. Appendix ............................................................................................................................. 21

8.1 SPAR South Africa – News ............................................................................................... 21

8.2 Events and History ............................................................................................................ 22

8.3 Awards and Recognitions .................................................................................................. 23

8.3.1 Awards ............................................................................................................................... 23

8.4 About Conlumino ............................................................................................................... 24

8.5 Disclaimer .......................................................................................................................... 24




List of Figures

Figure 1: SPAR South Africa – Revenues (US$ Million), 2008–2012.................................................................. 11

Figure 2: SPAR South Africa – Store Count, 2008–2012 .................................................................................... 12

Figure 3: SPAR South Africa – Sales Per Store (US$ Million), 2008–2012 ........................................................ 13

Figure 4: SPAR South Africa – Sales Per Square Meter (US$), 2008–2012 ...................................................... 14

Figure 5: Market Shares of Key Hypermarkets, Supermarkets and Hard-Discounters; Convenience Stores and

Gas Stations in South Africa ................................................................................................................................. 19




List of Tables

Table 1: Ratio Definitions ........................................................................................................................................ 7

Table 2: SPAR South Africa, Key Facts .................................................................................................................. 8

Table 3: SPAR South Africa, Store Banners ........................................................................................................... 9

Table 4: SPAR South Africa, Private Label Brands .............................................................................................. 10

Table 5: SPAR South Africa, Key Employees ....................................................................................................... 15

Table 6: SPAR South Africa, Key Employee Biographies .................................................................................... 15

Table 7: Key Hypermarkets, Supermarkets and Hard-Discounters; Convenience Stores and Gas Stations in

South Africa ........................................................................................................................................................... 18

Table 8: Market Share of Key Hypermarkets, Supermarkets and Hard-Discounters; Convenience Stores and

Gas Stations in South Africa ................................................................................................................................. 19




1. Introduction

1.1 What is this Report About?

‘SPAR in South Africa: Local Profile, 2013’ is a comprehensive report covering the company’s local operations.

It has an insightful strategic analysis of the company, and details of its history, news, and events.

The report is an essential tool to gain a detailed understanding of the company and obtain analysis of the

market and competitors, as well as internal and external factors that could impact the industry.

1.2 Scope

The report identifies and presents key information about SPAR in South Africa. In addition, it describes its local

operations, and features company news and events.

Key points covered in the reports are:

• Store formats

• Products and services

• Financial performance

• Key employee biographies

• The market share of key competitors

• Investment plan of key competitors

Note: In this report ‘review period’ indicates 2008–2012.

1.3 Methodology

Conlumino local profiles are based on a core set of desk research techniques which ensure the best possible

level of quality and accuracy of data, specific to a particular country. This involves extensive research of

international, local and specialist trade sources and databases. Analysts review all the inputs and where

required triangulate inputs in order to produce final numbers. The key sources used include:

Country Specific Company Websites

Company Annual Reports

SEC Filings

Press Releases and Company Presentations

Regional Trade/Industry Associations, Trade Journals, Government Statistical Websites, and Stock

Exchanges

Notes

Company financial and operational information is taken from the published annual reports, press

releases, and company presentations




Local Revenue is converted to US$ at average annual conversion rates as of calendar year end

Table 1: Ratio Definitions

Ratios Definition Sales per Store Sales per Store measures the total sales generated-from each

store of the company. It is obtained by dividing the total revenues earned from store sales by the total stores in operation during the review period. Formula: Revenue / No. of Stores

Sales per Square Meter Sales per Square Meter measures the total sales generated-per-square meter of retail space. It is obtained by dividing the total revenues earned from store sales by the total area of retail space (in square meters) during the review period. Formula: Revenue / Retail Store Area ( sq. m)

Revenue per Employee Revenue per Employee measures the average revenue generated per employee of a company during the review period. Formula: Revenue / No. of Employees

Employee per Thousand Square Meter This ratio measures the total number of employees employed per 1,000 square meters of retail store space during the review period. Formula: No. of Employees / Retail Floor Space ('000 Sq. m)




2. SPAR South Africa – Company Profile

2.1 Business Description

SPAR is an international retailer which began South African operations in xxxx, and currently operates through

a number of retail store banners such as SUPERSPAR. The company’s stores offer diverse product categories,

such as grocery, dairy and bakery products, in addition to general merchandise items such as stationery and

cosmetics. The retailer also provides various in-store services such as voucher cards. As of September 30,

2012 (FY2012), the company operated xxx stores with a total retail sales area of xxxxxx sq. m. It has its

headquarters in xx.

Table 2: SPAR South Africa, Key Facts

Headquarter

Founded

Total Sales (FY2012)

Employee (FY2012)

Number of Outlets (FY2012)

Channel

Source: Company Website and Conlumino © Conlumino




2.2 Store Banners

SPAR operates various stores banners such as SUPERSPAR in South Africa.

Table 3: SPAR South Africa, Store Banners

Store Banner Store Format Average Store Area (Sq. m)

SUPERSPAR

Source: Company website and secondary sources © Conlumino

2.3 Products

Product Assortment

SPAR stores offer a wide range of food and non-food products, with focus on regional and private labels.

Private Labels

SPAR offers a wide range of private labels, in addition to national and international brands.

Table 4: SPAR South Africa, Private Label Brands

Brand Name Product Offering

SPAR

Source: Company website © Conlumino




3. SPAR South Africa – Key Information

3.1 Financial Performance

In FY2012, the company recorded revenues of US$x million (ZARxx billion), which was a x% fall from the

previous year, due to exchange rate fluctuations. However, its revenues increased at a CAGR of xx% during the

period 2008–2012.

Figure 1: SPAR South Africa – Revenues (US$ Million), 2008–2012

Source: Conlumino © Conlumino




3.2 Key Employees

Table 5: SPAR South Africa, Key Employees

Name Job Title Board Level

Wayne Allan Hook

Mark Wayne Godfrey

Roelf Venter


Table 6: SPAR South Africa, Key Employee Biographies

Employee Name Biography

Name: Wayne Allan Hook

Designation:

Name: MJ Hankinson

Designation:

Name: MW Godfrey

Designation:





4. Competitive Environment

In the past few years, the South African economy witnessed a declining trend, impacted by a number of factors;

these include falling disposable income and a growing unemployment rate which have both affected growth in

the country. Difficult economic conditions have resulted in increased competition, with retailers offering a wider

range of private labels and product discounts in an effort to boost sales.

4.1 Key Hypermarkets, Supermarkets and Hard-Discounters; Convenience

Stores and Gas Stations in South Africa

Table 7: Key Hypermarkets, Supermarkets and Hard-Discounters; Convenience Stores and Gas Stations

in South Africa

Store Chain Store Banners Country of Origin

2012 Store Count First Store opened/

acquired in South Africa

Shoprite

SPAR

Pick n Pay

Woolworths Holding Limited


Note – This report only covers hypermarkets, supermarket, hard-discounters, convenience stores and the gas

station business segments of the SPAR group.




5. Appendix

5.1 About Conlumino

Conlumino Global Retail offers a comprehensive 360° view of the retail landscape. A team of analysts, with

more than 200 years of combined experience, help you identify and understand the most current retail trends.

Last year hundreds of retail businesses across the globe used our research to make critical business decisions.

5.2 Disclaimer

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any

means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the

publisher, Conlumino.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please

note that the findings, conclusions and recommendations that Conlumino delivers will be based on information

gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a

position to guarantee. As such, Conlumino can accept no liability whatsoever for actions taken based on any

information that may subsequently prove to be incorrect.




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