trade intelligence sample presentation

8/3/2019 Trade Intelligence Sample Presentation

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SPAR


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A voluntary trading group. Stores owned and run by SPAR members, supplied and serviced by regional Distribution Centres, owned by SPAR

SA

Operational Structure

Each DC managed autonomously as a profit centre by an Executive Mgt team

Decisions made by Group Services do not have to be implemented at DC level

Spar do not own any stores!

6 DCs are owned and run by SPAR and provide leadership and expertise to retail members.


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Channel / Formats

SPAR Stores

Trading Brand Positioning Size / Ranging

Every day convenience, speed and freshness Up to 600m2

Limited range of produce, bakery, fresh meat, prepared andtake-out foods

Neighbourhood and rural supermarket shopping 700m2 -1300m2 - Range of groceries backed by freshproduce, in-store bakery, butchery, deli and home meal

replacement departments

Aggressively priced one-stop bulk shopping 1300m 2 + : Full range of groceries and general merchandisewith service departments such as produce, bakery, butchery,

deli and meal solutions

Standalone liquor stores for SPAR members 120m2 + : Full range of liquor products

A one-stop retailer of building materials primarily on a cash &

carry basis supplying the building trade and DIY customers

Basic building and hardware products


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Store Distribution South Africa

Source : SPAR July 2009

44

15

28

23

30

4

144

90

77

47

86

16

45

58 57

25

40

16

0

20

40

60

80

100

120

140

160

South Rand North Rand KZN Eastern Cape Western Cape Lowveld

KWIKSPAR SPAR SUPERSPAR

Botswana incl with N.Rand, Namibia incl with W.Cape


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Exceptional brand management and support capacity for members ensuring a consistent

message over a wide range of store formats and consumer markets

A finely tuned logistics and distribution operation

Brand appeal and consistent brand message across LSMs 1-10

Exceptional reach into SAs full range of markets (LSM 1-10) through the flexibility built into the

Retailer Member modelE.g. : SPAR Thohoyandou sells 5 tons of chicken feet a day

Ongoing store refurbishment/ modernisation programme (20% stores per year)

Core competencies


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Actual gross margin declined by 0,2% attributed by SPAR to a change in the sales mix (DC sales versus drop shipment), and

the competitive trading environment

Group Financial Performance

*Note: CPIX was re-weighted at the end of 2008. 2009 figure is CPI

The Group (Rmillion) FY2004 FY2005 FY2006 FY2007 FY2008 HFY2009

Group Turnover 11,985 13,599 17,010 21,704 26,742 16,100

Group % TurnoverGrowth 18.0% 13.5% 25.1% 27.6% 23.2% 24.5%

Gross Profit % 9.2% 8.8% 8.4% 8.2% 8.1% 7.9%

Operating Profit 395 499 603 775 972 605.1

Operating Profit Margin 3.3% 3.6% 3.5% 3.5% 3.6% 3.8%

CPIX (Average for the period) 4.3% 3.9% 4.4% 5.8 10.4% 10.9%

Strong growth for the past three years with excellent performance at retail


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1. The SPAR Brand : Good For You

Strategic Drivers

Young, modern and energetic.

Focus on offering an unforgettable shopping experience

The principle : Life is full of great moments and shopping at SPAR is one of them

The Objective:

To make SPAR the first choice food store that appeals to all South Africans no matter where they live, what ethnic group they belong

to, their gender, their age or their spending power


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SUPERSPAR, Glenwood, KwaZulu Natal Feb 09

ShopperCommunication > Inside the Store

2. The Store Experience: The Re-Mix Programme

The store remodel programme > Re-Mix and Lets Entertain strategy

Target extension and modernisation of 20% of stores p.a

129 stores in 2007 / 144 in 2008


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Strategic Drivers

4. Private Label

SPAR driving Private Label very aggressively at the shop shelf and in consumer communication. A critical means of improving

SPAR trading margin!


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Strategic Drivers

5. Convenience

Focus on high margin specialist service departments, fresh and HMRs

Be aware of pressure on grocery allocation > store level contact critical


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Strategic Drivers

6. Emerging Market

Continued drive into emerging markets with 105 emerging market stores to date

Growing at a significant rate > Greenfields territory, and not an easy win SPAR model ideal


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Strategic Drivers

7. Improved Operational Efficiencies : Distribution

R1bn spent in upgrading facilities ever last 3 years

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