Spar profits hit by July riots, lingering effects of alcohol bans during lockdown

Bruce Whitfield asks Spar CEO Brett Botten about the group’s results for the year at the end of September.

The Spar Group reported an increase in revenue of nearly 3% to nearly 128 billion rand for the fiscal year ended September 30, 2021.

Spar Southern Africa contributed to wholesale sales growth of 3.4% to R81.3 billion.

In South Africa, many retailers in Gauteng and KwaZulu-Natal were severely affected by the July unrest.

“The estimated wholesale turnover loss for the period is R 638.4 million in our main grocery, alcohol and construction businesses, or about 0.8% of the turnover of these businesses. combined activities. “

RELATED: Sasria Hit by R32 Billion Claims Following July Troubles, R12 Billion Already Paid

Spar says he has helped facilitate the disbursement of R572 million to affected retailers so far from the SA Special Risks Insurance Association (Sasria).

Bruce Whitfield interviews Brett Botten, CEO of the Spar Group.

We had about 180 stores impacted … We managed to rebuild about 130 so we still have about fifty more or less that are still closed by the end of the year, including 20 Spar stores. Most of them will be rebuilt in the coming months.

Brett Botten, CEO – Spar Group

About 20 stores across all of our banners are long term rebuilding projects … but our retailers have been amazing with the help of their staff and communities so we’re positive about it.

Brett Botten, CEO – Spar Group

While Spar has its own massive distribution centers across the country, its retailers are independent.

Who is then responsible for carrying out the necessary reconstructions?

Funding [of the rebuilds] is the responsibility of individuals, but most of them will be the subject of insurance claims. We have worked with our retailers on these claims and many have been paid.

Brett Botten, CEO – Spar Group

We also worked with them to find equipment for the stores … but at the end of the day, they are responsible for the funding.

Brett Botten, CEO – Spar Group

In addition to the chaos of July, the damage caused by bans on the sale of cigarettes and alcohol.

Our alcohol performance over the year has been quite strong – up around 11% – but we are still 6% behind our 2019 level. This is around R500 million. at constant price. It shows you how badly it has hurt our business.

Brett Botten, CEO – Spar Group

In 2021, the days we lost were mostly Friday, Saturday and Sunday. This is a big deal for us at Tops and it also affects the Spar store next door … We lost this deal as well.

Brett Botten, CEO – Spar Group

Listen to Botten discuss Spar’s local and international performances below:

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