RetailAnalysis
29 February 2016
SPAR Austria reports strong sales

Sales in SPAR Austria's home market increased by 3.2% in 2015, while its operations outside of Austria increased by 4.6%.

Positive performance

SPAR Austria generated a turnover of €6.1bn in 2015 and now has 1,615 stores across Austria, up from 1,599 in 2014. SPAR Austria has continued to achieve the highest growth among full line supermarkets in the country, for the sixth year running.

Private label contribution

In particular, the strong performance of its private label products has helped to drive this strong sales growth, with the total share of private label turnover now around 39%. SPAR has developed its range in response to market demands, and has seen a positive response. Its organic line, SPAR Nature, has seen sales increase by 16% and its convenience range has grown 23% in the last year. Both its lower and higher priced ranges have seen growth, with S BUDGET growing by 13% and SPAR PREMIUM up by 21%.

Future growth and technological initiatives

SPAR International continues to open new stores across its numerous markets and invest in its existing estate. The SPAR group has invested €550m into its estate in 2015 and a similar amount is planned for 2016. The retailer also operates many production facilities, helping it to control its supply chain costs and keep prices competitive.

SPAR Austria is trialling new digital retail innovations and is working with the Vienna University of Economics to conceptualise the SPAR market of the future. Work so far includes a new generation of electronic shelf labels.

Format development

Convenience is a growing focus for the retailer, with 91 of the 784 independent SPAR Austria stores operating as Express convenience stores. INTERSPAR, the hypermarket format, continues to expand mostly in the East of Austria, in particular Vienna, with 15 hypermarkets now operating in the greater area.

 

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