The Spar Group Limited. JSE: SSP

Background of SPAR
The SPAR Group is a leading wholesaler and distributor of goods and services, with a history stemming back to its establishment in South Africa in 1963 as a wholesaler servicing 500 small retailers.
Today, the group supplies and services almost 2 000 independently-owned SPAR stores in South Africa and a number of other African countries. The group broke new ground in 2014 when it decided to buy BWG in Ireland, comprising more than 1 300 SPAR, MACE, XL and Londis stores and various wholesale cash and carry branches. The group also acquired a majority stake in SPAR Switzerland, bring total footprint to more than 4 000 stores.
The group also owns Build It stores in Southern Africa, TOPS @ SPAR liquor stores and Pharmacy @ SPAR stores. Products are distributed from seven distribution centres and put up for sale in the group’s stores.
SPAR Group shares are listed on the Johannesburg Stock Exchange (JSE) with a market cap of R35 billion.
SPAR Shares Growth Driver
SPAR’s business model is grounded in a voluntary trading agreement with its network of independent retailers, which allows stores to source goods from local traders and target their own LSM targets whilst utilising SPAR’s trading power. This limits the group’s exposure to any one customer group or geographic region.
Southern African operations contribute 77% to the group’s overall turnover, supported by regional distribution centres catering for distinct customer profiles. In 2016, the group expanded its international footprint with the move to buy a majority stake in SPAR Switzerland. Despite a constrained economic environment in South Africa, the group’s financial data for the year was impressive, with turnover increasing by 23.8% to R90.6 billion and operating profit rising by 12% to R2.5 billion. Net asset value per share rose by an impressive 63% to 3 140 cents.
Liquor sales from TOPS have been a star performer for the past few years, with revenue rising by 12% in 2016. Turnover from Build It also rose by 11.5%, and turnover from Ireland grew by 36.8% as the store footprint expanded. The stores in Switzerland made their first contribution for the year, generating R5.8 billion turnover.
A total of R441 million capital was invested in expanding operations, whilst a further R750 million was spent on acquisitions, illustrating a particularly active growth year for the group.
SPAR Group Investor Tip
SPAR Group shares have been a blue-chip retail stock to buy, with the JSE stock chart showing a sharp rise in SPAR Group share price from R125 in 2014 to R186.52 by November 2016. The company is aggressively expanding both in southern Africa and Europe, and now has a balanced asset base which makes SPAR Group shares a more attractive buy than ever before. The future forecast hints at a rising SPAR Group share price.
SPAR Major Shareholders
Government Employees Pension Fund, Oppenheimer Funds Inc
Sector
Consumer Staples
Industry
Food & Staples RetailingSub industry
Food & Staples Retailing
How to buy SPAR Group Shares
SPAR : How to buy SPAR Group Shares Online
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Frequently Asked Questions
What is Spar?
A leading wholesaler and a distributor of goods and services in South Africa and other African countries.
Can you buy Spar shares online?
The website of SA Shares makes it easy for you to buy JSE listed shares online.
Is Spar shares a good buy?
Future forecast for Spar includes hinting at a rising share price.
When did Spar list on the JSE?
2004
When was Spar founded?
Established in South Africa in 1963.