Sun Oct 23 08:14:42 CAT 2016

spar's profit is 20% up in difficult times

By Zweli Mokgata | Nov 12, 2009 | COMMENTS [ 0 ]

SUPERMARKET chain Spar have recorded a 20percent increase in turnover in a year described as being one of "two halves".

The group also reported a 25percent rise in trading profit for the year ended September. Chief executive Wayne Hook confirmed the company was continuing to cooperate with the Competition Commission in its price-fixing probe.

The commission launched the investigation against Spar and fellow retailers Pick n Pay, Shoprite-Checkers and Woolworths in June.

The four enjoy a market share of 60percent. The probe covers collusion relating to the abuse of buying power, imposition of exclusive leases, category management and exchange of information.

All four have distanced themselves from any wrongdoing.

Said Hook yesterday: "The group has undertaken to fully cooperate ... and is of the opinion that no contraventions of the Competition Act have taken place."

In terms of the company's results, he said: "The year was one of two halves. During the first six months food inflation ran at an average of 16percent and group turnover increased by 24,5percent. The second six months saw food inflation decline significantly to an average of 9percent which, with increased pressure on consumer spending, resulted in a sharply reduced turnover increase of 14,9percent."


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