Trading better with SPAR Insight on shoppers: insight on stores March 2018 © IGD 2018 A national portfolio with increasing diversity With nearly 2,500 stores and total retail sales of £2.9bn makes SPAR one of the biggest single fascia groups in UK convenience retailing. SPAR is present in a huge variety of locations from city centres, suburban neighbourhoods, rural centres, and increasingly forecourts too. Partnered with fast-growing dealerships, such as Euro Garages, SPAR is now the largest convenience retail fascia in the UK fuel sector with over 1,200 forecourt stores. To meet the needs of this diversity, SPAR is now flexing its format execution more than ever to create solutions relevant to different traffic flows and missions, as well as different demographics and levels of affluence. © IGD 2018 Source: IGD Research Top 2 reasons shoppers choose The top 3 missions in SPAR What defines SPAR stores: stores are: Channel avg the SPAR 1. They are conveniently SPAR located 1. Top-up shopper? 47% 54% 2. They offer a quicker and easier in-store experience 2. News/ lottery/ As part of our focused research on tobacco 40% 24% convenience for ShopperVista, IGD tracked shoppers in the channel on a monthly basis over 14 months (Sep’16-Nov’17) to create a 3. Food- picture of the shopper profile of the 13 largest to-go UK fascias (multiple, co-op and symbol). 26% 29% Here are some of the key characteristics of the SPAR shopper. Note that SPAR over- SPAR is 4th (out of 13) for Vs the average the SPAR indexes vs the channel average on the news/lottery/tobacco mission yet under- shopper satisfaction with: shopper is: indexes on top-up and food-to-go, key growth areas. Shopper satisfaction is high compared to competitors. 51% More northern 31% … live in the North With one of the widest presences in the sector of England SPAR has the opportunity to address needs from all groups in many different locations. Understand in-depth how SPAR shoppers Older 41% … are aged compare to other convenience store shoppers 88% 55+ in our ShopperVista convenience retailers compared reports 74% More varied 28% … are DE …satisfied that they got what they in affluence shoppers needed on last visit © IGD 2018 Base: All last trip shoppers for SPAR, Sep’16-Nov’17. Page 3 Traditional footfall drivers remain key ShopperVista insight indicates that traditional small-store missions have a bigger role in SPAR stores compared to the channel average, with categories like tobacco, confectionery, snacks and soft drinks taking a significant share of sales. However, alongside established impulse brands next generation snacks and drinks, especially healthy alternatives are becoming increasingly important in driving daily footfall into stores. With SPAR shoppers including a wide breadth of demographic groups, promotions and value are also a vital part of the mix. © IGD 2018 Source: IGD Research Page 4 Meeting rising shopper expectations Within the UK symbol retailing sector SPAR is leading the way in adapting to changing shopper behaviours and consumption habits. A focus on creating credible solutions for the fast growing missions such as food-for-now and food-for-later is now the key driver in the evolution of its formats. This is bringing new forms of retail service, including fresh preparation, counter service and vending into stores to satisfy a widening range of shopper demands. As a ‘partner’ brand SPAR offers flexibility for retailers to combine third party brand solutions in store with its own in-house solutions to create a compelling in-store offer. This approach enables retailers to create mix adapted to their own needs and offers scope for them to exercise their own entrepreneurialism. © IGD 2018 Source: IGD Research Page 5 Building credibility with fresh Putting well executed ‘fresh’ at the centre of the store is a critical skill being embraced by more SPAR retailers than ever before. As well as creating compelling impacts with the shopper, demonstrating capability in managing and merchandising of fresh effectively underpins the credentials of the wider food offer, bringing a halo to the store as an appealing shopping destination. © IGD 2018 Source: IGD Research Page 6 A supplier focus on innovation in impulse, Opportunities Leading snacking and food-to-go categories is more presence on UK critical than ever now as SPAR aims to keep forecourts ahead of rapidly evolving tastes and expectations for suppliers amongst these ‘transient’ shoppers. Under-indexing A key growth area for convenience retailers and on food-to-go an opportunity for suppliers to enhance SPAR’s proposition across food-to-go missions in order to attract more shopper into store Value drives footfall and incremental Value is purchasing, with opportunities for suppliers important across all categories to bring compelling offers to market through SPAR’s high profile promotional programmes. Building SPAR under-trades in these bigger transactions. As capability in well as providing quick, space-effective solutions, ‘meal for tonight’ suppliers able to bring quality credentials can play a is key central role in supporting this strategic goal. Suppliers who can help SPAR build credibility Fresh takes through innovative and impactful merchandising centre stage solutions, creating a halo effect on the whole store, have an opportunity bring value to this key category Speed is critical Suppliers can support this with product and to many SPAR merchandising solutions that enable rapid shopper shopper selection, such as meal deals and dual missions product sitings; helping reduce time in store, but also boosting basket size. © IGD 2018 IGD Convenience Retailing Summit 18 26-27 September 2018 Hear directly from SPAR’s commercial leadership team in the etc.Venues, County Hall dedicated ‘Retailer in Focus’ session on 26 September: London • Learn how SPAR’s growth can create new opportunities for Understand SPAR’s key your business priorities and what they • Get updated on SPAR’s priorities for 2019 and beyond mean for your business at the 2018 IGD Find out more The session will be lead by: Debbie Robinson, Managing Director, SPAR UK Book now » © IGD 2018 Page 8.