The sharp suited analysts over at snappily-named research business Intellidex, are liking SPAR’s chances post the acquisition of jolly Irish retail group BWG. But, they caution, with growth in SA slowing, the rest of Africa is going to be critical in the verdant retailer’s future progress. You will recall that the acquisition of BWG boosted interim sales to the tune of 21%, and interim profit by 10%. Down the line, with the Celtic Tiger if not exactly roaring but looking well-rested none the less, and GDP in the Emerald Isle expected to come in at 4% this year, prospects there look fairly buoyant. Back home, competition for a declining consumer rand is fierce, although Intellidex believe that SPAR could grow its margin nicely by leveraging economies of scale. And Africa? SPAR has built a healthy springboard in what used to be called the frontline states, hopes to open in Zambia soonish and has plans for heading even further north in the near future.
Comment: (Nods sagely). Economies of scale, eh? Good things to, er, leverage, those. Lots of potential upside. Or even upside potential, as we in the industry say.