Symbol group sees growth but warns of tough trading conditions
SPAR Scotland wholesaler CJ Lang & Son has reported a strong set of financial results for the year to 28 April 2024 in the face of a bleak trading year.
But chief executive Colin McLean has warned a hike in operating costs, dismal summer weather and supply chain unpredictability would impact the year ahead.
The Dundee-based wholesaler reported a net turnover increase of 14.2% to £253million this year, with pre-tax profits up by 8% to sit at £4million.
Colin McLean, chief executive at CJ Lang & Son Ltd, said:Â “We have delivered robust growth over the last 12 months and achieved another year of strong sales and profits. However, this year the summer was against us and the year ahead presents challenges we must prepare for.”
McLean has put this success down, in part, to the company’s investment into the Spar Scotland symbol over the past financial year. This has seen the introduction of 12 new company-owned store to the estate, with three coming from the acquisition of former Eddy’s Food Station stores, and the remaining nine from the buyout of the ScotFresh retail brand.
Further to this, the symbol has continued bolster its independent store estate by bringing more store owners to the Spar brand, with further award-winning retailers now operating under the Spar brand.
And the introduction of the Barista Bar in-store coffee service has certainly paid dividends for CJ Lang. Despite only rolling out to the Scottish market for the first time last year, CJ Lang is now set to introduce its 50th Barista Bar to the Spar estate later this month.
The coffee service has allowed for a greater uptake in link-up sales with customers as well such as with its massively popular Breakfast deal which lets consumers pick up a bacon roll and a coffee for an attractive £2.99, challenging the prices of fast food chains in doing so.
The wholesaler also recently strengthened its relationship with suppliers across the trade at the recent Spar Scotland Tradeshow. The 2024 event attracted almost 850 delegates including leading FMCG suppliers, Spar retailers and colleagues, helping to put massive global brands directly in contact with retailers across the breadth of Scotland.
Even with such a positive result for the Spar Scotland symbol in 2024, McLean and the team at CJ Lang look to a more cautiously optimistic approach for the next 12 months.
Plenty of work has been done to lay the groundwork for the wholesaler, something that McLean believes will help to support the symbol as we look to enter some troubled waters ahead.
Employers and retailers alike are set to keep an close eye on the UK Government’s upcoming annual budget on 30 October, with a rise to National Insurance for employer all but confirmed.
Keeping this in mind, McLean believes technology will have a big part to play in the convenience channel for 2025. Spar Scotland has been ahead of the game here with its introduction of electronic shelf-edge labels (ESLs) across its store estate as well as its innovative Newton Eye camera tech.
The new camera system, which was introduced to Spar Market Crosshouse earlier this year, marked a global-first in convenience and allows retailers to monitor stock levels across the shop floor and identify any misplaced stock. The store introduced 70 new cameras to do this and is thought to help save hundreds of hours of extra work by store staff.
While the past year has seen Spar Scotland come on leaps and bounds, 2025 looks to be an opportunity for the estate to continue to support the strong foundations already in place and bring a focus on building and strengthening the Spar Scotland family.
McLean said: “Rising operational costs, combined with changing habits and supply chain unpredictability are critical factors that will continue to shape the year ahead.
“We have had another strong year but we cannot rest on our laurels. As a genuinely Scottish family based business, we are well positioned to continue our journey to meet the needs and support of our customers with the best that Spar Scotland can offer.
“Our stores serve communities of all sizes across Scotland; our customers are our neighbours. I would like to thank them, along with our suppliers, independent retailers and all our colleagues, for their continued support.”
