CJ Lang is ramping up its value credentials with a raft of promotions, a push on own label and staff discounts to help shoppers and retailers navigate the cost of living crisis.
The Scottish Spar wholesaler launched a value campaign six weeks ago on everyday staples, including an 800g Mother’s Pride loaf and a six-pack of eggs for £1 each, plus a two-litre jug of milk at £1.27.
It has also been driving greater distribution of Spar own-label under the ‘Spotlight’ initiative which involves getting over 100 of its bestsellers into stores that deliver “true profit” for retailers.
”It’s about trying to recognise for our independent retailers that Spar own label is a credible alternative and we can use that to offer customers better value through the cost of living crisis,” said CJ Lang CEO Colin McLean.
The business also doubled staff discount from 10% to 20% earlier this year, which has now been extended to Christmas. Every colleague also now has an extra discount card for a family member.
“We know there are tough times ahead for all and our primary focus is to offer a value proposition to help support our customers and staff through the ongoing uncertainty,” added McLean.
Rising costs, however, meant the Spar wholesaler had to introduce a fuel surcharge in August for independent retailers at £10 per delivery.
CFO Guy Smith, who joined the business in June, said: “The best way to describe it is we’re sharing the burden with them, as obviously they know our fuel costs have gone up. But we’re not charging that entire amount and they’ve acknowledged it would be fair to cover part of that.”
The Dundee-based business has also been driving a greater focus on food to go since investing £2m last year into rolling out its CJ’s proposition across the company-owned estate. This includes a hot breakfast and lunch offer, with support from local bakers for a range of rolls, cakes, sweet treats and hot savouries.
It said food to go was a key driver behind its boost in pre-tax profits over the past year, given its higher margin tendencies. They grew 10.7% to £3.4m for the year ending 30 April 2022, with overall margin rising by 0.3% to 23.3%. Turnover dropped by 0.1% to £212.3m.
CJ Lang added that since removing several Post Office kiosks from stores, it has been able to use that space more productively for its food-to-go proposition.
“We have been able to use that space and put in a profitable food-to-go proposition that drives customer traffic, footfall and works with award-winning local bakeries,” said McLean.
In terms of expansion, the business has acquired two new stores in the past six months, including Dalbeattie, Dumfriesshire in April, which operates under the Spar Market fascia. This was the first company-owned store it bought in five years.
While CJ Lang is looking to expand further, it said it wasn’t a “numbers race” and was about recognising “the right opportunities at the right time”.
“It’s a combination of showcasing and acquiring the very best of company-owned stores and then building a very strong independent pipeline on the back of that,” said McLean.
It recently expanded the independent estate with Scottish convenience chain David Sands joining the business with four stores.
McLean added: “Despite the changing landscape, we remain committed to our strategy for profitable growth. We have continued to implement our key pillars across the business, including investing in our food-to-go offering, improved profitability and pricing, and optimising our distribution processes.
“With our vision of developing a solid business not just for today but for tomorrow too, we have grown independent sales, and are excited to welcome on board more retailers in the future and further expand our relationships.”
No comments yet