Group trading director Peter Miller told Spar’s annual conference in Cape Town that the group needed to start behaving like a big retailer.
He said: “We have to convince our suppliers to increase substantially their investment and support for Spar. We will do this by becoming easier to do business with and a more attractive customer to invest in.”
The first stage is developing a core range of 2,000 products for Spar’s wholesalers (known as RDCs). A review is under way and should be completed by
January. Miller said: “The core range will provide suppliers with volume and distribution opportunities and a more cost effective supply route.”
He added: “We intend to make it more attractive to suppliers by consolidating our volume into the core range, eliminating duplicate brands and managing Real Deal promotions within it.”
At the same time, Spar is developing a core retail range of 1,200 products that it hopes to implement next April. The range will be aggressively promoted to retailers, with the aim of getting all 2,700 Spar stores to list the range. Miller added: “Spar will adopt common rules governing the management and reporting of the retail core range, set retail compliance targets and have penalties for non-compliance.”
Miller also announced a raft of initiatives to boost sales of own label products.
Miller said his aim was to deliver compelling product propositions so that Spar own label products were the brand of choice for RDCs and retailers.
He told retailers: “The RDCs have committed to fully support and promote the relaunched range. This secures better costs from the supply base. Give us your support and we’ll get better prices. Volume is what will enable us to buy better.”
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