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Spar Poland Reaches One Billion Złotych Revenue

Spar to Go
Photo: LZ Retailytics
To meet market demand, Spar in Poland will put a stronger focus on convenience and food-to-go in its future store concepts.

Spar Poland has already reached its 2017 revenue targets. As retail portal handelextra revealed, by the end of 2017 total revenue will exceed PLN1bn (approximately EUR230mn), meaning a total year-on-year increase of 26%. This will be partly achieved through an increase in like-for-like sales of around 7%. The retailer aims to expand its total store count to 400 by 2021.

Spar operates its franchise in Poland in cooperation with wholesale and retail company Bać-Pol, which has its own franchise network of Słoneczko (Sunshine) minimarkets and Bać-Pol Cash & Carry markets in parallel to its distribution activities.


Jumping onto the Convenience Train

Spar is gaining speed in Poland. A like-for-like improvement close to that of supermarket channel heavyweights Dino and Stokrotka is notable. This especially for a player that does not currently even make the national top 20 ranks. The traditional arrangement for its franchised operations – partnering with a medium-sized retailer – seems to work well. The venture’s opportunity for synergies are substantial. Bać-Pol’s well-developed wholesale and distribution network and its membership in the PL Plus buying group may help Spar to anchor itself in terms of local assortment. Meanwhile the Rzeszów-based multi-format company gains invaluable know-how and Spar’s international halo, not to mention its quality own brands.

This in a time where each partner operating alone would be faced with overwhelming odds. In the proximity supermarket channel Dino, Stokrotka, and Polomarket are Polish-owned local heroes and all are expanding their presence rapidly, overtaking the discount segment in terms of growth rates. In the wholesale and distribution segment behemoths like Eurocash and GK Specjał are pushing the integration of owned retail operations, as can be seen from the examples of Eko and Mila as well as the pending Avita takeover.

We believe that Spar will be able to grow faster than the market, even in an intensifying competitive environment. In comparison to its other international operations, Spar has adapted its supermarket banner in Poland into a minimarket format seldom exceeding 300 sq m sales area, therefore gaining the opportunity to edge closer to its customers. This strategy is also expressed in the newly launched marketing campaign under the slogan ‘Moja okolica, mój Spar’ (‘My neighbourhood, my Spar’). Economies of scale achieved through buying advantages and combined logistics with other medium-sized market players will provide a stable platform for successfully expanding its business, creating a noticeable market presence in the medium term.