Talking Retail Grocery and product news for independent retailers
Turnover grew to £212.5m – up 9.4% on the previous year – with pre-tax profits rising to £3m in the year to 30 April, according to figures just released by the Dundee-based company.
Chief executive Colin McLean said: “It demonstrates the strategy we have put in place over the past three years is working and we are in a strong position as we emerge from the pandemic.
“We have growth trajectory, we source 50% of our supplies from Scotland and we understand the market and the consumer so we are better placed than competitors to deal with the many challenges facing the industry.”
Finance Director Craig Tedford said: “What we saw during lockdown was a spike in demand for shopping locally.
“We have been seeing 11% sales growth over a three-year period and the impact of Covid boosted that.
“The number of store visits was down but shoppers were buying more.
“Now we are coming out of lockdown, the underlying growth we saw before lockdown is still there.”
The short-term 50% discount on business rates for retailers announced in the autumn Budget does not apply in Scotland.
Tedford added: “There are things in the Budget that we are positive about.
“I would hope the Scottish government would follow suit and apply the discount.
“Local communities and high streets have taken such a pounding in recent years so anything that can help regenerate is good for everybody.”
One pressure facing the company going forward is rising prices as inflation builds.
McLean added: “Like every retailer, we will be fighting very hard to manage cost increases and price rises for our customers.”
In the past 12 months, the company has invested £2m-plus in the roll out of its food-to-go offer, CJ’s, which will be in the majority of company-owned Spar stores by the end of 2021.
It recently announced record levels of investment in its estate with a major programme of store refurbishment starting early in 2022.
The funding will be spent on energy saving refrigeration in company-owned stores to improve the customer offering across chilled foods and produce.
The company is also planning refits to update formats to enhance the layout, look and feel of its stores in Scotland.
CJ Lang has 300-plus outlets, including more than 100 company-owned Spar stores, operates an onsite distribution centre and employs some 1,800 staff.
