SPAR International Annual Review 2020 SPAR International Rokin 99 -101, NL-1012 KM Amsterdam Tel: +31 (0)20 626 6749 Fax: +31 (0)20 627 5196 www.spar-international.com Managing Director’s Report 48 181 14.5 “ The SPAR ethos of partnership and COUNTRIES NEW STORES MILLION collaboration provides a solid foundation for CUSTOMERS future success, ensuring that we grow and prosper together as we continue to meet PER DAY the needs of the communities we serve.” Tobias Wasmuht, Managing Director, SPAR International STRONG GROWTH Our Annual Review for 2020 provides just a The entire SPAR worldwide organisation In this unprecedented year, requiring resilience €39.8 BILLION IN TIMES OF ADVERSITY snapshot of how our more than 410,000 SPAR was able to make a difference through the and agility like never before, annual sales 410,000 13,501 255 colleagues across over 13,500 stores fulfilled resourcefulness and responsiveness that growth of 7.4% and total turnover of €39.8 TOTAL SALES an essential role in supplying their local comes from our integrated local presence, and billion for 2020 represents a remarkable SPAR STORES DISTRIBUTION 2020 was very much characterised by the communities with continued access to fresh together we were able to respond to the needs achievement by the SPAR Brand globally. impact of the global COVID-19 pandemic and food and daily essentials, at a time when they of our communities with speed and agility. The response to the COVID-19 pandemic COLLEAGUES CENTRES its severe consequences, but it was also a year were needed most. succeeded in highlighting the collective which saw accelerated growth as a result of the It is hard to underestimate the critical role local 7.4% SALES GROWTH strength of the SPAR family, the competitive dedication and focus of our highly committed SPAR, as a leading global retailer, has a proximity retailing, in many cases delivered by advantages of the SPAR multi-format strategy, SPAR colleagues across all parts of our global major responsibility and an essential function local independent retailers rooted in the OVER PREVIOUS YEAR and the critical role of independent retailing in SPAR network. to fulfil. We worked hard throughout the year to community, has played as a critical lifeline for societies and communities across the globe. AT CONSTANT maintain the supply of products to our stores, local communities through this pandemic. The terrible impact of the pandemic on a to make sure our stores were safe and secure, CURRENCY VALUES global scale and the rapid pace of its spread whilst also scaling up our online channels and At an international level we were proud to be across multiple countries could not have been helping the wider communities we support in able to effectively support and serve the needs predicted and, as such, found us having to large scale and innovative ways. of our SPAR colleagues worldwide across the respond with great urgency and speed. full spectrum of our supply chain through the 552M2 AVERAGE However, crisis situations do invariably bring Our SPAR country initiatives included working changing phases of our global COVID-19 out the best in people and we at SPAR can with local charities to ensure the delivery of response. GLOBAL STORE SIZE be proud of the astounding selfless and brave groceries to members of the local community 7.45 5,347 7.6% response of the SPAR worldwide organisation. most at risk, who were often older and self- Thank you to all SPAR Colleagues worldwide MILLION M2 EURO AVERAGE GROWTH IN isolating. A common feature across all markets that have selflessly continued to work and be 2020 OVERVIEW was the importance of the established local there for our customers. Thank you, too, to our OF RETAIL ANNUAL SALES RETAIL SALES supply chain. SPAR local and regional sourcing suppliers and business partners worldwide that initiatives not only provided access to market have collaborated so well and supported us SALES AREA PER M2 PER M2 for existing suppliers, but also for new suppliers through the crisis and, in many ways, whose traditional channels such as foodserve demonstrated the importance of working better or Horeca had been significantly diminished. together more so than ever before. Together, we have persevered and delivered a strong performance in the most adverse of times. SPAR International Annual Review 2020 3 Managing Director’s Report OUR WORLDWIDE PERFORMANCE CENTRAL AND EASTERN EUROPE the company’s largest hypermarkets. SPAR the response to the pandemic including SPAR SPAR China recorded retail sales of €1.55 billion Albania showed great agility and adaptability by Cameroon (+15%), SPAR Mozambique (+14%), and like-for-like annual sales growth of 7.9%. Our Continued expansion by the 11 SPAR countries switching focus to omni-channel and utilising its SPAR Zimbabwe (+9.6%), and SPAR Namibia six SPAR partners in China successfully opened operating across Central and Eastern Europe hypermarket infrastructure to fulfil online orders. (+2.4%). 57 new stores, including the launch of SPAR saw like-for-like sales increase by 8.9% on the China’s first independent retailer operated stores. SPAR Georgia built on its record performance in SPAR Ghana officially joined the SPAR family Despite the challenges of 2020, the SPAR WESTERN EUROPE previous year. The early introduction of COVID-19 restrictions brand continues to grow across all five global 2019 by recording another year of strong growth, in 2020, opening its first stores in August. SPAR Hungary retail sales grew by 9% in the led to a renewed emphasis on digital, online regions. The global retail turnover of €39.8 billion With overall sales growth of 12%, SPAR opening over 80 new stores and recording sales The company had 10 stores operational by year to €2.3 billion, prompted by the success of retailing, and consumer loyalty programmes. represents a 7.4% over the previous year. A total countries across Western Europe returned an growth of 34.8%. In what provides a snapshot the end of the year, with a further 10 openings continued investment in its multi-format strategy. Mobile payments within SPAR China now of 13,501 stores in 48 markets with retail sales exceptional sales performance in 2020 of €25.7 of SPAR’s reach into local communities across planned in 2021. 2020 saw particular growth in the contribution stand at 85%. area of 7.45 million square metres serve 14.5 billion. The 16 SPAR countries and 10,000 Europe, SPAR Georgia successfully contributed of independently owned and operated stores SPAR’s performance in 2020 in the Middle million customers each day. stores that represent the region delivered 64.6% to the Georgian Government initiative to provide Out of all SPAR countries worldwide, SPAR East was characterised by exceptional sales of SPAR global revenue in the 12 months to which now account for over 35% of SPAR stores SPAR vouchers for food and other essentials India has experienced the greatest challenges growth for SPAR Oman and for SPAR Qatar The most significant engine for growth in 2020 December 2020. in Hungary. which could be redeemed at SPAR stores as a result of COVID-19. Widespread restrictions was SPAR’s mature markets in Western Europe, (25% and 82.5% respectively). This was driven SPAR Slovenia provided a case study on throughout all of Europe by Georgian citizens led to the nationwide closure of large-scale which experienced annual growth of 12%. Once again, SPAR Austria proved the standout by investment in the store proposition and the critical role omni-channel retailing played stranded overseas due to the COVID-19 SPAR Hypermarkets for much of the year – This growth was driven by being very much performer with highly impressive revenue growth corresponding uplift in average baskets as throughout 2020. Growth of 8.2% was driven travel restrictions. which impacted directly on SPAR India's retail connected with customer needs through our of 16% to record total sales of €8.3 billion – up customers increased their propensity to dine by effectively engaging consumers through footprint. The move prompted SPAR India to shift multi-format store proposition and the rapid €1.2 billion on 2019. The company excelled in its at home and reduce eating out. traditional and online platforms, including AFRICA AND THE MIDDLE EAST focus and maintain momentum, and customer adoption of technology and innovation which in responsiveness to consumer needs throughout services, throughout COVID-19 restrictions, strategic investment in digital and mobile For SPAR in the United Arab Emirates and engagement and loyalty, through impressively turn was rewarded by the trust and loyalty of our the pandemic, and its strategic investment Across Africa and the Middle East, the SPAR to the communities in which they operate. apps and best-in-class loyalty programmes. Saudi Arabia it was a year of consolidation. ramping up their SPAR online channels. SPAR customers. programme saw growth and expansion of its Brand deepened its presence in 15 countries store footprint and distribution network. SPAR The UAE remains SPAR’s largest market in Across the south of the European continent SPAR Poland saw a return to growth in 2020. and continued its growth trajectory with sales Across the remainder of the region, the SPAR A unique strength is the SPAR model of Austria is again the fastest growing food retailer the region and grew by 2.1% in the year. After there was a similar story of growth in Retail sales grew in the year by 12%, with plans of €6.23 billion, representing a 2.8% increase brand has continued to outperform the market. independently owned and operated stores in the market and, for the first time in its history, a record year of growth in 2019, SPAR Saudi independent retailing.