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Our investment case

Since listing on the JSE in 2004, the group has shown growth in earnings, dividends and value per share as a result of the following:

A diverse geographical footprint
Procurement, warehousing and distribution competence
Supply-chain efficiency
Independent store ownership model
Strong leadership and human capital development commitment
International information sharing and governance network

A diverse geographical footprint

  • Our diversified geographical footprint encompasses seven distributions centres and warehouses that support 2 138 stores in both urban and rural residential areas in emerging as well as developed markets internationally.
  • We have a sustained focus on new business development in Africa and recently expanded into Asia through a joint venture in Sri Lanka.

Procurement, warehousing and distribution competence

  • We have a decentralised management model through an extensive network of distribution centres and warehouses that allow independent retailers to benefit from economies of scale and procurement efficiencies.
  • Collective responsibility is focused at distribution centre level to manage risk in the supply chain.
  • Purchasing freedom, which is integral to the voluntary trading relationship, allows retailers to tailor their offering to their specific market.

Supply-chain efficiency

  • Joint business planning with major suppliers targets vertical co-ordination and mutually beneficial initiatives (promotions, packaging, logistics, innovation and category development).
  • Independent retailers benefit from reduced administration time and costs resulting from a single invoice and a single delivery from SPAR, reducing the cost per unit.
  • Our focus on alternative sources for energy, fuel and water, combined with extensive recycling capability, ensure further cost savings in the supply chain.
  • Our emerging farmer development programme is a leading and successful initiative aimed at transforming our South African supplier profile.

Independent store ownership model

  • SPAR stores continue to deliver year-on-year growth from the existing store base.
  • SPAR stores offer different formats that address the food shopping needs of all income groups – from large format to convenience and forecourt stores.
  • SPAR stores are predominantly owner managed with an entrepreneurial approach that entrenches the vested interest of independent retailers in the long-term success of their stores.
  • Our focus on the fresh offering leverages higher gross margins for retailers and responds to growing consumer demand for healthy and convenient products.

Strong leadership and human capital development commitment

  • SPAR is recognised as a Top Employer in South Africa.
  • Motivated and capable management teams in Southern Africa, Ireland and Switzerland are supported by an experienced and committed board of directors.
  • The SPAR academy’s wide range of skills and leadership development programmes ensure that a sustainable pool of talent is accessible to the group, while the diversified geographic footprint broadens the range of attractive career opportunities for employees.

International information sharing and governance network

  • As part of the SPAR International network, we share international best practice in brand management, marketing, human resources, information management, logistics and operations.
  • The guild structure supports the efficient functioning of the voluntary model, enables strong stakeholder relationships and guides effective national and regional marketing campaigns and strategic sponsorships.
  • Substantial scope exists to further leverage synergy as well as operational expertise between the Southern African, Irish and Swiss operations.

A diverse geographical footprint

  • Our diversified geographical footprint encompasses XX distributions centres and warehouses that support XX stores in both urban and rural residential areas in emerging as well as developed markets internationally.
  • We have a sustained focus on new business development in Africa and recently expanded into Asia through a joint venture in Sri Lanka.

Procurement, warehousing and distribution competence

  • We have a decentralised management model through an extensive network of distribution centres and warehouses that allow independent retailers to benefit from economies of scale and procurement efficiencies.
  • Collective responsibility is focused at distribution centre level to manage risk in the supply chain.
  • Purchasing freedom, which is integral to the voluntary trading relationship, allows retailers to tailor their offering to their specific market.

Supply-chain efficiency

  • Joint business planning with major suppliers targets vertical co-ordination and mutually beneficial initiatives (promotions, packaging, logistics, innovation and category development).
  • Independent retailers benefit from reduced administration time and costs resulting from a single invoice and a single delivery from SPAR, reducing the cost per unit.
  • Our focus on alternative sources for energy, fuel and water, combined with extensive recycling capability, ensure further cost savings in the supply chain.
  • Our emerging farmer development programme is a leading and successful initiative aimed at transforming our South African supplier profile.

Independent store ownership model

  • SPAR stores continue to deliver year-on-year growth from the existing store base.
  • SPAR stores offer different formats that address the food shopping needs of all income groups – from large format to convenience and forecourt stores.
  • SPAR stores are predominantly owner managed with an entrepreneurial approach that entrenches the vested interest of independent retailers in the long-term success of their stores.
  • Our focus on the fresh offering leverages higher gross margins for retailers and responds to growing consumer demand for healthy and convenient products.

Strong leadership and human capital development commitment

  • SPAR is recognised as a Top Employer in South Africa.
  • Motivated and capable management teams in Southern Africa, Ireland and Switzerland are supported by an experienced and committed board of directors.
  • The SPAR academy’s wide range of skills and leadership development programmes ensure that a sustainable pool of talent is accessible to the group, while the diversified geographic footprint broadens the range of attractive career opportunities for employees.

International information sharing and governance network

  • As part of the SPAR International network, we share international best practice in brand management, marketing, human resources, information management, logistics and operations.
  • The guild structure supports the efficient functioning of the voluntary model, enables strong stakeholder relationships and guides effective national and regional marketing campaigns and strategic sponsorships.
  • Substantial scope exists to further leverage synergy as well as operational expertise between the Southern African, Irish and Swiss operations.