Spar and its Guild retailers commit to working together to strengthen the business

The engagement followed a statement issued on 16 September by the Guild Retail Directors of the Spar Guild of Southern Africa, in which they reaffirmed their commitment to working constructively with the board and the executive team, and to giving the executive leadership the platform and support it needs to deliver.

As part of the ongoing collaboration between The Spar Group and its independent retailers, executives and Guild representatives spent two days together in KwaZulu-Natal advancing initiatives aimed at strengthening retailer profitability, improving competitiveness and delivering a better experience for customers.

The sessions on 16 and 17 September brought the group and retailers together around five priority areas:

Merchandising and pricing
Retailer profitability
SPAR2U
Brand and marketing effectiveness, and
Retailer technology.

The workshop was structured as a series of working sessions rather than presentations.

Participants shared perspectives from wholesale and retail, tested ideas, identified obstacles, and worked through how initiatives already under way can be translated into stronger execution at store level.

The discussions were direct and practical.

The common focus was how to make the Spar system work better for retailers and customers, while building greater accountability for delivery across the workstreams.

The engagement also gave both sides an opportunity to assess the progress already made, exchange ideas and confirm that the workstreams are moving in the right direction.

Collaboration grounded in the Spar model

Tobias Wasmuht, managing director of Spar International, travelled to South Africa to take part in the workshop.

He says the engagement reflected a core strength of the Spar model: independent retailers and the wholesale organisation bringing their different expertise to the same table.

“Over the past two days, I saw the Spar model at its best: independent retailers and the group bringing their experience to the same table, speaking openly and working through practical solutions.

“The energy was constructive and the focus was firmly on execution,” says Wasmuht.

“Spar succeeds when entrepreneurial retailers are supported by the scale, expertise and resources of the wider organisation.

“That spirit was clear in every discussion.”

From the workshop to the shop floor

On the second day, the group moved from the workshop room to the shop floor at Lifestyle SUPERSPAR in Ballito, where a major refurbishment was 42 days from completion.

The visit provided a practical view of the science behind modern food retailing.

Store layout, customer flow, lighting, shelving, category adjacencies and product ranging are all being considered through the lens of how customers experience the store.

Even the colour of the racking has a purpose. Black shelving is being used extensively across the redesigned store, while white racking has been selected for the wellness section to create a cleaner, more clinical setting suited to the category.

The product range is similarly informed by the demographics and needs of the surrounding community.

The aim is to ensure that what is stocked, where it is positioned, and how it is presented reflect how customers in that market shop.

The refurbishment is designed to make the store easier to navigate, more relevant and more inviting. It also gives customers more reasons to enter the store and return.

The physical environment is only part of the experience. The store is placing equal emphasis on staff training, product knowledge and service with a smile.

A modern store may be well designed, but the interaction between a customer and a staff member remains one of the most important expressions of the Spar brand.

A shared focus on delivery

For the Guild, the workshop represented an important step in converting the renewed engagement into action and building momentum across the five priorities.

“This engagement showed what working together looks like in practice,” says Roy Sheodin of the Spar Guild.

“Retailers brought the reality of the shop floor and the Group brought its expertise, scale and resources. We exchanged ideas openly, challenged each other constructively and made real progress on initiatives already under way.

“We all want stronger retailers, a stronger Spar and a better experience for customers. That is where our energy is going.”

Over the next 12 months, progress across the workstreams will be measured by stronger retailer economics, improved price competitiveness, better execution, and a customer experience that earns greater loyalty.

‘United cooperation’

The two-day engagement showed how practical work, open exchange and shared accountability are strengthening the relationship needed to deliver those outcomes.

The Group and its retailers are moving in the same direction and are focused on the same goal.

That is the shared objective the Guild set out in its statement: “To restore confidence, rebuild the strength of the business and return the Spar Group and its retailers to the level of performance, pride and success that has historically defined Spar.”

The retail directors closed their statement with a principle familiar to every Spar retailer: “All shall benefit through united cooperation.”

Brought to you by The Spar Group.

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