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South Africa’s second-biggest supermarket retailer, Spar Group, plans to open premium and discount grocery stores while also entering new niche retail markets, its chief executive Angelo Swartz said on Thursday.
They are also moving into new non-food markets by opening standalone stores for such items as pet and baby supplies, clothing and outdoor adventure products to help diversify and generate additional income.
“With Spar, what we have been struggling with in the last while is that, because we tried to cover both markets with one brand, being able to draw that distinction has probably been a challenge in the last while,” Swartz told reporters in Johannesburg.
He added that the retailer, which also operates in Ireland and Switzerland, is looking to tier its private-label ranges and create new grocery store formats.
“Our differentiation is going to focus on premiumising and [therefore] we might see a premium format being created, and then at the other end of the market, globally, we’re seeing the emergence of discounters, and discounters have been really strong,” Swartz said.
South Africa’s higher-margin upmarket grocery niche is dominated by Woolworths, while in the discount space, Shoprite has Usave while Pick n Pay operates Boxer chains catering for that market.
www.moneyweb.co.za
They are also moving into new non-food markets by opening standalone stores for such items as pet and baby supplies, clothing and outdoor adventure products to help diversify and generate additional income.
“With Spar, what we have been struggling with in the last while is that, because we tried to cover both markets with one brand, being able to draw that distinction has probably been a challenge in the last while,” Swartz told reporters in Johannesburg.
He added that the retailer, which also operates in Ireland and Switzerland, is looking to tier its private-label ranges and create new grocery store formats.
“Our differentiation is going to focus on premiumising and [therefore] we might see a premium format being created, and then at the other end of the market, globally, we’re seeing the emergence of discounters, and discounters have been really strong,” Swartz said.
South Africa’s higher-margin upmarket grocery niche is dominated by Woolworths, while in the discount space, Shoprite has Usave while Pick n Pay operates Boxer chains catering for that market.
Spar steps up battle for affluent and discount shoppers
Plans to open premium and discount food stores.
www.moneyweb.co.za
