Spar Scotland wholesaler CJ Lang & Son Ltd has reported another annual increase in underlying profit for the financial period ended 28 April 2024, though the firm has warned that a below par Summer this year has hindered trade.
Net turnover rocketed 14.2% to £253m – an increase of 10 percentage points on the previous year, while pre-tax profits growth slowed slightly, up 8% to £4m, versus a 10.3% rise in the year to 30 April 2023. The company explained that there would have been further growth, but that the figures took into account technical adjustments due to the group’s acquisitions of three former Eddy’s Food Station stores last year, together with the Scotfresh Group of nine convenience stores.
While the Eddy’s outlets were converted to Spar Scotland over the space of a weekend, the Scotfresh conversions have been slower, with seven now branded as Spar, while the remaining two stores in Cardonald and Denny are set to be completed by January.
Over the past 12 months, the company has invested in several major store refits at Kilwinning, Lawthorn and Erskine. The roll out of the exclusive Barista Coffee offer, together with digital screens and electronic shelf edge labels has helped modernise the overall customer shopping experience, while the group’s head office also underwent a major refit.
While the group will continue to invest in the business over the coming year, the firm’s main focus will be on fully utilising its existing systems, stated CJ Lang & Son Ltd CEO Colin McLean.
He told SLR: “We’ve spent lots of money – over £30m over the last five years. Having spent a lot of money on new stores and new systems – electronic shelf labels, Relex forecast and demand planning – the big challenge is how you get the best out of what you’ve already spent. So, we’ll probably draw breath, rather than spend the kind of money that we have been spending.”
Chairman Jim Hepburn added: “We’ve continued to invest at a level probably twice that of some of our competitors. It’s important that we continue to do that and make sure that we have stores that are fit in the future.”
McLean claimed that “the lack of summer” had made for “a challenging start” to the year and that further challenges lay ahead.
He said: “We’re delighted with what we’ve done last year, but recognise looming budgets and uncertainty across the economy and consumer confidence obviously ebbing a wee bit, I think we’re just trying to be guarded. There’s obviously increased costs coming through off the back of national living wage etcetera, so we’re just trying to be sensible and recognise that we’ve had a good run, but this year is more about consolidation.”
He praised everyone involved in the success of the business. “Our stores serve communities of all sizes across Scotland; our customers are our neighbours,” he said. “I would like to thank them, along with our suppliers, independent retailers and all our colleagues, for their continued support.”
The company shared its success to date and future direction at the C J Lang Spar Scotland tradeshow at the end of September in Aviemore. This attracted almost 850 leading FMCG suppliers, Spar independent retailers and colleagues to celebrate the achievements of the past year and the company’s plans for the future. The event also recognised the importance of independent Spar retailers and celebrated a number of long standing family relationships as the business continues to grow its symbol group estate across Scotland.
