Spar's UK profits up

Community retailer Spar announced a 6.4% rise in UK profits today as it fought off competition in a sector seen as the new battleground for supermarkets.

The group, which has 2,700 shops run by independent grocers, said its performance in the year to April 30 had been helped by its decision to beef up its presence on petrol station forecourts.

More than 400 garage stores are now trading under the Spar brand – a 10% increase on last year.

Spar also said same-store sales – excluding the impact of new and closed sites - were 2.4% higher in the first six months of the calendar year, compared with last year, accelerating to a 6% rise in July.

It said sporting events such as Wimbledon had encouraged shoppers to buy more drinks from its stores.

Competition in the convenience sector has been fierce in recent times, as major retailers such as Tesco and Sainsbury’s move to snap up smaller operators.

Managing director Jerry Marwood said Spar’s success was down to factors such as availability and pricing, as well as its drive to constantly update and improve its own-label range.

The mutually-owned company distributes products to its grocers through six wholesalers across the country. The UK business is part of an international chain with nearly 16,000 stores in 34 countries.

As well as selling groceries, Spar offer services such as in-store cash machines, National Lottery tickets and mobile phone top-ups.

The company did not reveal the profits figure it achieved in the six- month period.

There are more than 400 Spar outlets in Ireland.