Scottish wholesaler and SPAR retailer CJ Lang & Son has reported an increase in annual profit after continuing with its growth plans.
The Dundee-based business saw its pre-tax profits climb 10.3% to £3.7m during the year to 30 April 2023, on turnover up 4.2% to £221.3m. The group noted that it was the fifth year of growth in underlying profitability since the development of its five-pillar, customer-facing business strategy.
CJ Lang stated that the results were delivered in a year of challenging economic conditions and record food inflation. It highlighted that it benefitted from the habits of shopping locally established during the pandemic being retained by a noticeable proportion of consumers.
The group expanded its independent SPAR estate during the year, adding a further eleven stores. At the same time, an initiative addressed the consistency of customer brand standards across the entire SPAR Scotland estate.
Last week, the company announced the acquisition of Glasgow-based convenience chain Scotfresh, which operates nine stores across Scotland’s central belt and south of the country.
CEO Colin McLean commented: “Being genuinely Scottish has enabled us to adapt quickly and react flexibly to the ever-changing retail landscape and continue to provide a first-class service to our independent retail customers, consumers and communities at a time when they have needed us most.”
As well as store acquisitions, CJ Lang has been rolling out new energy-saving refrigeration, digital lighting and electronic shelf edge labels. A new ‘CJ’s’ food-to-go offer was also recently launched in Garthamlock, with a variety of food and drink options.
McLean added: “Record levels of business investment also include new forecasting and demand planning systems being implemented for improved ‘end-to-end’ customer availability from supplier, warehousing and into SPAR stores.
“We also continued to grow our independent customer base and make improvements to our offer to meet the changing customer needs within convenience retailing. We are now attracting the very best of Scottish retailers to join SPAR Scotland thanks to our competitive wholesale delivered package and own label SPAR range, whilst sharing the very best of our learnings from our company store investment programme.”
He concluded: “Despite the changing landscape, we remain committed to our strategy for profitable growth. We have continued to implement our key strategy pillars across the business, including investing in our food-to-go offering, improved profitability and pricing and optimising our distribution processes.
“As a genuinely Scottish, family-owned wholesaler and retailer, we can understand our local customer needs better and respond quickly to the ever-changing market trends than most other UK-managed convenience operators.”
“With record levels of financial investment signed off once again, together with our latest ScotFresh store acquisition, our SPAR Scotland momentum continues to gather pace and our business is off to a very strong start in the new financial year.”
NAM Implications:
- CJ Lang is proof that there is life after Lockdown fallout.
- By going back to basics, with eyes wide open…
- Time to check that you have secured your fair share of sales and profits.
