Spar Sees Sales Rise 3.6% In Slovenia
The Slovenian unit of the Spar supermarket chain – Spar Slovenija – posted a 3.6% growth in sales during 2018, to €804 million.
The result was better than the market average, as overall food sales in Slovenia dropped by 1% in the same period, according to local media reports.
Spar Slovenija also managed to boost its market share to over 22%.
Presenting the results, Spar Slovenija general manager Igor Mervič pointed out that Slovenian consumers were more affected by the economic crisis than their EU counterparts. Despite favourable trends in GDP, exports, wages and employment, consumers remained extremely prudent, investing mostly in durable goods.
Mervič said that factors contributing to the group’s positive result included the opening of a new store in 2018, as well as the above-average performance across its other 100 stores, and improved logistics.
In addition to Spar’s sales network and 21 franchised Spar partner stores, online sales also increased, ending 2018 with double-digit growth.
Mervič estimates that online sales will start turning a profit in four years, adding that e-commerce is earmarked to expand to areas outside of Ljubljana over the next three years.
The retailer continues to expand its private-label offering, with over 4,300 SKUs now available, many of which are produced locally.
Spar Slovenija is also committed to consumer health, with initiatives to cut salt and sugar consumption. Together with producers of selected products, it has committed to gradually reducing the consumption of sugar by 80 tonnes by the end of 2020, and the consumption of salt by 25 tonnes.
Plans for 2019 include the opening of six new stores, the expansion of the franchise network, and the renovation of seven stores. The next major opening will be an Interspar store in the new Šiška Shopping Mall, now under construction and due to open in the spring of 2020.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.