1. Store Footprint Report
Publication date:
June 2019
Next publication:
March 2020
Store Footprint Report

2. Store Footprint SPAR Group Store Footprint
SPAR International is present in 48 countries with over 246 distribution centres and over 13,000 stores. SPAR South Africa services independent retailers across eight formats in 10 countries serviced by eight distribution centres.
SPAR Southern Africa increased its store network to 2,308 stores as at the end of March 2019 (FY2018: 2,236 stores). This represents +1.3% growth in retail space for HY2019 with the addition of 72 net new stores
SOURCE: SPAR Group Ltd
NOTE: All store numbers exclude the BWG Group and SPAR Switzerland and refer only to Southern African stores unless stated otherwise. SPAR Southern Africa includes Namibia, Botswana, Swaziland, Mozambique and Zambia

3. Store Footprint SPAR Group Store Footprint (cont.)
SPAR Southern Africa increased its store network to 2,308 stores in HY2019 (FY2018: 2,236 stores), this represents +1.3% growth in retail space for HY2019 with the addition of 72 net new stores
The Group opened a net 72 new stores in HY2019. This represents a growth of +3.2% over the six months and +19.3% over five years
SPAR has 952 stores after opening a net 15 new stores in HY2019
Express opened 11 net new stores in the six months, up 39.3% to 39 stores
TOPS at SPAR opened a net 25 stores in the six months bringing the total to 799 stores
Build it opened a net 13 stores in HY2019 bringing the total to 389 stores
SPAR Savemor is trading out of 54 stores, up a net of 6 in the last six months
Pharmacy at SPAR broke the 100 mark during FY2018 ending the year with 101 stores. During the six months for HY2019 the Group opened 13 net new Pharmacies, totalling 114 pharmacies as at the end of March 2019
SOURCE: SPAR Group Ltd

4. Five-year Net New Stores
Store Footprint
Store Footprint
Trading Brand
FY2015
FY2016
FY2017
FY2018
HY2019
Five-year growth
Total SPAR Group
1935
2033
2138
2236
2308
19.3%
Total SPAR
885
890
903
937
952
7.6%
SUPERSPAR
329
335
348
356
 --
13.7%*
SPAR
425
426
418
428
0.2%*
KwikSPAR
131
129
125
-7.4%*
Express 3 4 12 28 39
1200%
TOPS at SPAR
652
691
733
774
799
22.5%
Build it
320
368
376
389
21.6%
SPAR SaveMor 32 42 44 48 54
68.8%
Pharmacy at SPAR 46 62 90
101
114
147.8%
Net New Stores
Trading Brand
FY2015
FY2016
FY2017
FY2018
HY2019
Five-year Net New Stores
Total SPAR Group 70 98
105 72
443
Total SPAR 10 5 13 34 15 77
SUPERSPAR 16 6 8
 --
51*
SPAR -2 1 -8
-4*
KwikSPAR -4
-11*
Express 2 11 38
TOPS at SPAR 30 39 42 41 25
177
Build it 26 28 20 95
SPAR SaveMor 3 4
Pharmacy at SPAR 69
Source: SPAR Group Ltd. Note: -- Data not reported for the period. * calculated off FY2018 vs FY2014

5. Store Footprint SPAR Group Store Footprint (cont.) DC Size (m2)
FY2018
% Contr to Total Space
Total Size
100.0%
South Rand
61 000
21.1%
KwaZulu Natal
69 112
23.9%
North Rand
53 317
18.4%
Western Cape
40 405
14.0%
Eastern Cape
31 685
11.0%
Lowveld
21 416
7.4%
Import (Build it)
10 000
3.5%
S Buys
2 295
0.8%
There are eight distribution centres in South Africa, six regional SPAR distribution centres and an imports (Built it) and S Buys distribution centre
Making up 295,500 m² of warehousing space as at March 2019 (FY2018: 289,230 m² )*
Case volumes through the DC has increased +5.2% in HY2019 to 121 million cases dispatched
Non-SA stores are serviced through the South African distribution centres
DC Capabilities (millions of cases)
Regions
FY2015
FY2016
FY2017
FY2018
HY2019
Five-year growth to FY2018
Total Cases
218.1
226.2
221.6
231.7
121.0
9.9%
South Rand
57.8
60.5
62.6
61.0
-- 
8.2%
KwaZulu Natal
51.7
52.3
49.5
51.1
2.4%
North Rand
37.7
37.8
35.2
40.8
9.8%
Western Cape
31.8
34.0
35.1
34.9
17.1%
Eastern Cape
27.5
29.1
27.6
31.6
20.5%
Lowveld
11.6
12.5
12.3
8.6%
import (Build it)
1.7
2.0
2.3 --
S Buys
SOURCE: SPAR Group Ltd
NOTE: *Regional data not reported for HY Total case volume does not include the import (Build it) DC

6. Store Footprint SPAR Group Store Footprint (cont.) Store Revamps
SPAR’s ongoing, clear strategic focus on organic growth, improved shopper experience and brand enhancement means maintaining the momentum of store upgrades
175 SPAR Southern Africa stores were revamped in HY2019 (HY2018: 131 stores)
89 of those were under the Spar brand (HY2018: 80 stores)
42 TOPS at SPAR stores were revamped (HY2018: 29 stores)
35 Build it and 9 SPAR Savemor
Non-SA Stores
As at December 2018 the SPAR South Africa DCs were reportedly distributing to 169* Non-SA stores, this is a net increase of 12 stores
Country Spread – Dec 2018
Regions
SUPERSPAR
SPAR
TOPS at SPAR
SAVEMOR
Pharmacy at SPAR
Total
TOTAL 27 68 62 8 4
169
Namibia 24 28 60
Botswana 26
Swaziland 3 9 2
Mozambique 14
Zambia
Distribution for Non-SA is out of the regional DCs in South Africa
Western Cape delivers to Namibia which opened a net of 5 new stores and now trades out of 60 stores
North Rand delivers to Botswana with 60 stores having +4 net new as well as Zambia which now has 9 stores
Mozambique and Swaziland receive from the Lowveld DC with 14 and 26 stores respectively, Mozambique opened a net 5 stores while Swaziland closed 11 stores
SOURCE: SPAR Group Ltd
NOTE: *Regional data not reported for HY2019

7. Store Footprint SPAR Group Store Footprint (cont.) Geographic Spread*
As SPAR is essentially a distribution business, the below geographic spread is broken down by DC and indicates the number and format of stores each DC services
South Rand DC services the most stores at 531, with KwaZulu-Natal second at 443 stores
21 net new stores were added to the distribution for the Lowveld DC in FY2018, 19 additional were added to the Western Cape DC
TOPS at SPAR stores added to the DC distribution for all regions in FY2018 as the footprint expands
Geographic Spread – FY2018
Regions
SUPERSPAR
SPAR
KWIKSPAR
SPAR Express
SPAR SAVEMOR
TOPS at SPAR
BUILD IT
PHARMACY at SPAR
Total
Net New Stores
356
428
125 28 48
774
376
101
2236 98
South Rand 95
118 30 5
192 71 20
531 16
North Rand 61 79 14
131 55 27
388 18
KwaZulu-Natal 92 58 25 8
153 83
443 9
Western Cape 39 88 40 6
144 56 24
403 19
Eastern Cape 47 49 2 10
119 46
294 15
Lowveld 22 36 35 65
177 21 4 41 11
SOURCE: SPAR Group Ltd
NOTE: SPAR Non-SA is serviced by DCs in South Africa; * Regional data not reported for HY2019

8. Store Footprint SPAR Group Store Footprint (cont.) Planned New Stores
Although no specific new store detail is provided, SPAR Southern Africa plans to continue organic growth through refurbishments and store format optimisation
Plans have been put on hold for building a DC in the West Rand and expanding the Eastern Cape DC “subject to improved demand levels and rising economic confidence”
The Group have identified the forecourt market as a new growth opportunity in fresh, frequent and convenient shopping. With fuel manufacturers and wholesalers being prohibited from holding retail licences, there is strong competition for these sites. Stores are typically between 80 and 150m² and serve mid- to high-income groups
SPAR Express forecourt stores at Shell garages are performing well. 15 new SPAR Express stores are due to open in FY2019, with a goal to have between 70 and 80 outlets by the end of 2020
In FY2017, SPAR expanded into Sri Lanka, South East Asia through a 50% joint venture with Ceylon Biscuits Limited – to benefit from the rising disposable income, increased urbanisation, tourism and the country’s shift to formal food retail. 2 stores are already open with 5 more stores are in the pipeline to 2020 with a total of about 45 new SPAR stores planned to open by , primarily owned by independents
SPAR International has awarded the Group the SPAR licence to operate in Poland. Subject to the approval of the Office of Competition and Consumer Protection. The group is in the final stages of negotiation to acquire the Piotr i Pawel Group consisting of 77 supermarket stores and a wholesale distribution network
SPAR plans to expand in Africa but in a very measured, step-by-step rollout
SOURCE: SPAR Group Ltd

9. Maryla Masojada. |. Lead Analyst Carey Leighton. |
Maryla Masojada | Lead Analyst Carey Leighton | Associate Retail Analyst