South Africa's SPAR plans chain of up to 40 high-end grocery stores
South African grocery retailers are increasingly tailoring stores to wealthy or low-income customers in a market that is becoming more polarised.
"The strategy includes converting high-end niche SPAR stores while also opening new locations in strategic sites. We anticipate around 30 to 40 Gourmet stores in the future, though no fixed timeline has been set," Max Oliva, SPAR Southern Africa CEO, told Reuters.
The South African retailer owns several SPAR country licences of the Dutch SPAR group.
Presenting on Wednesday at the company's capital markets day, Oliva told investors that the new SPAR Gourmet format would target customers in high-end residential and urban areas.
"Key focus areas include premium food solutions, coffee, bakery, and indulgent products, with a curated assortment tailored to meet the needs of a more affluent customer base," he said.
SPAR Gourmet and discount chain SaveMor are part of the group's segmentation strategy, similar to what rivals Pick n Pay (PIKJ.J), opens new tab and Shoprite (SHPJ.J), opens new tab have been doing in recent years.
To strengthen its position in the competitive discount grocery sector, SPAR will also be revamping the SaveMor chain.
South Africa's higher-end grocery market is dominated by Woolworths (WHLJ.J), opens new tab, followed by Shoprite's Checkers chain. In the discount space, Shoprite has Usave and Pick n Pay has Boxer (BOXJ.J), opens new tab.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
3 hours ago
- Reuters
Key elements of EU-U.S. trade deal agreed on Sunday
BRUSSELS, July 27 (Reuters) - The U.S. and the European Union agreed on a framework trade deal on Sunday, ending months of uncertainty for industry and consumers on both sides of the Atlantic. Here are the main elements of the deal: * Almost all EU goods entering the U.S. will be subject to a 15% baseline tariff, including cars, which now face 27.5%, as well as semiconductors and pharmaceuticals. The 15% tariff is the maximum tariff and is not added to any existing rates. * However, the U.S. is to announce the result of its 232 trade investigations in two weeks and decide separately on tariff rates for chips and pharmaceuticals. Whatever U.S. decisions come later on these sectors will be "on a different sheet of paper", European Commission President Ursula von der Leyen said. * The U.S. and EU will have zero-for-zero tariffs on all aircraft and their components, certain chemicals, certain generic drugs, semiconductor equipment, some agricultural products, natural resources and critical raw materials. More products would be added. The situation for spirits is still to be established. * Tariffs on European steel and aluminium will stay at 50%, but von der Leyen said these would later be cut and replaced by a quota system. * The EU pledged to buy $250 billion of U.S. liquefied natural gas (LNG) a year for three years, totalling $750 billion in total, as it replaces Russian gas. The EU will also buy nuclear fuel from the U.S. * Under the deal, the EU pledged to buy U.S. military equipment and European companies are to invest $600 billion in the U.S. over the course of Trump's second term.
Reuters
3 hours ago
- Reuters
EU's von der Leyen: 15% the 'best we could get'
PRESTWICK, Scotland, July 27 (Reuters) - European Commission President Ursula von der Leyen defended the trade deal clinched with United States on Sunday as "the best we could get" and not to be underestimated given the looming threat of 30% tariffs that had been hanging over the EU. A baseline tariff rate of 15% on EU goods imported into the United States would apply to most goods including cars, semiconductors and pharmaceutical goods, von der Leyen said. Meanwhile, a zero-for-zero tariff rate had been agreed for certain strategic products, including aircraft and aircraft parts, certain chemicals, and certain generic drugs. No decision had been taken on a rate for wine and spirits, she added. Asked if she considered 15% a good deal for European carmakers, von der Leyen told reporters: "15% is not to be underestimated, but it is the best we could get." The European Union committed to purchasing $750 billion worth U.S. LNG and nuclear fuel over three years. "We still have too much Russian LNG that is coming through the back door," she said. The European Commission has proposed phasing out all Russian gas imports by Jan 1, 2028. "Today's deal creates certainty in uncertain times, delivers stability and predictability," von der Leyen told reporters before leaving Scotland.
Reuters
4 hours ago
- Reuters
EU's von der Leyen: trade deal delivers certainty in uncertain times
PRESTWICK, Scotland, July 27 (Reuters) - European Commission President Ursula von der Leyen on Sunday said a U.S. baseline tariff rate of 15% on imported EU goods would apply to cars, semiconductors and pharmaceutical goods. She also said that a zero-for-zero tariff rate had been agreed for certain strategic products, including aircraft and aircraft parts, certain chemicals, and certain generic drugs. No decision had been taken on a rate for wine and spirits, she added. "Today's deal creates certainty in uncertain times, delivers stability and predictability," von der Leyen told reporters before leaving Scotland.
