Spar2U’s online volume surges

Spar’s latest half-year financial results show a major spike in its Spar2U delivery service sales volumes and a positive financial position.

The supermarket chain’s on-demand delivery service thrived over the six months ending March 2024.

It saw an increase of 463% in online sales volumes from the six months before.

Spar2U sites also increased to 420 from 356 at the end of September 2023. These refer to Spar shops that support the service.

More generally, Spar Southern Africa reported a 4.8% increase in wholesale turnover in its latest interim results.

This figure accounts for its supermarket operations, Spar2U delivery service, Build It, Spar brand pharmacy, Tops at Spar, and house brand.

Its wholesale grocery business increased sales by 4%, and Tops at Spar also saw an increase in turnover by 12.8%.

Last year, Spar told MyBroadband that the number of supported stores had reached 373 by November 2023, and 170 more were planned for the following months.

Spar also said then that its on-demand delivery service saw month-on-month revenue and volumes increase by an average of 27% during 2023.

Other developments at the delivery service include reducing its dependence on fuel-powered delivery vehicles.

Spar’s on-demand delivery service uses electrified vehicles that combine grid and solar power.

R6.2 million was spent on 65 of these vehicles.

Blake Raubenheimer, an omnichannel executive at Spar Group, told MyBroadband that the company is considering multiple electric vehicle types — from scooters to trucks — to evaluate their viability for use across several services Spar2U will offer in the future.

Raubenheimer said the electric vehicles are charged using a 50:50 grid and solar power combination.

“By adopting a dual charging approach, with 50% solar and 50% Eskom charging, an estimated annual offset of approximately 3.27 tons of carbon emissions per bike will be achieved,” Raubenheimer said.

“Our goal is to achieve a 50% Spar2U green fleet by 2025, not only enhancing our nationwide availability but also delivering a greater positive environmental impact.”