Spar, Eurospar, Mace, Londis and XL 'performing strongly' despite cost-of-living crisis

Spar Group update showed its BWG operations in the Republic were outperforming by a far stretch the growth rates of many of its other retail operations, including in Switzerland and Poland

BWG currently operates more than 1,000 outlets across all the businesses it operates in the Republic.

The South African company that owns the 1,000-plus grocery outlets under the Spar, Eurospar, Mace, Londis, and XL names said sales in the Republic have been growing strongly in recent months, despite the cost-of-living crisis.

In an update, the Spar Group, which is based in South Africa and whose shares trade on the Johannesburg stock exchange, said sales at the BWG division, which includes its retail and wholesale operations here, and at Spar-owner Appleby Westward in the south-west England, had posted an increase in turnover of 8.8% in euro terms or, by over 15% in terms of rand, in the six months to the end of March. 

"The strength in Irish business performance was driven by strong performances across all retail brands, a full recovery of the hospitality sector, which was restricted for parts of the prior comparative period, and the successful integration of recently acquired small wholesale businesses," Spar Group said of its operations at the halfway stage. 

The update also showed its BWG operations in the Republic were outperforming by a far stretch the growth rates of many of its other retail operations, including in Switzerland and Poland. 

BWG currently operates more than 1,000 outlets across all the businesses it operates in the Republic. Spar in the North is owned separately. 

Turnover at the Swiss business fell by over 4% in Swiss franc terms, "due to the continued decline in volumes across the market", but turnover in Poland measured in zloty was up by almost 5%, "despite this business having terminated contracts with 58 retailers in July 2022", the group said. 

In its home market, the Spar South Africa business was mixed, with turnover "adversely impacted by a challenging consumer environment", among other issues. 

BWG in the Republic has expanded its wholesale activities in recent times. Earlier this year, BWG heralded plans to open 60 new outlets under the Spar and Eurospar names, focusing on new housing estates and to upgrade 100 existing outlets, after setting new sales target across the two retail chains. 

It said it generated total sales across the Spar and Eurospar chains of €1.6bn last year, and had forecast sales would increase to €1.67bn this year. The plans would bring the number of stores under the Spar and Eurospar names over the next three years to 525 outlets. 

Spar Group fully owns BWG after BWG chief executive Leo Crawford and other senior directors sold up their remaining minority stakes in recent years.