Kumar De Silva, Chief Executive of SPAR Sri Lanka, describes SPAR as an integral part of the local modern retail landscape, committed to nurturing independent food retail establishments operating under the SPAR banner. De Silva emphasizes the company’s dedication to providing high-quality, value-driven shopping experiences while empowering independent retailers to enhance their business performance, is a model that is tried and tested across 48 countries in which SPAR is present.
Since its establishment in 1932 in the Netherlands, SPAR has expanded to over 13,900 stores in 48 countries across four continents, serving a daily customer base exceeding 14.7 million. SPAR, the world’s largest voluntary food retail chain, launched the brand in Sri Lanka on 06 April 2018. SPAR Sri Lanka (PVT) LTD is a partnership between SPAR South Africa and Ceylon Biscuits Limited. De Silva provides insights into SPAR’s influence on modern retail in Sri Lanka in this interview.
How does SPAR differentiate itself from the competition in the current environment?
Our distinctive edge lies in the carefully crafted shopping experience we offer. Our stores transcend conventional retail spaces; they are immersive environments that consistently captivate customers, even in challenging times. Each store boasts a unique layout and fixtures, meticulously designed to foster a personalized and inviting ambience. We prioritize diversity over uniformity, striving to recreate the charming essence of a neighbourhood store with a modern twist.
Furthermore, our extensive product range sets us apart. Our stores feature a broader selection compared to competitors, boasting consistently well-stocked shelves with minimal gaps and we maintain competitive pricing for essentials and commodities including vegetables, fruits, fish, meats and meal options including a range of EDLP (Everyday low price). This approach caters to a wide spectrum of income groups. Another facet of our distinctiveness is our approach to promotions.
While many retailers employ loyalty card programmes that segregate discounts, we chart a different course. We offer an equitable 20-30% discount to all customers, irrespective of loyalty card possession, placing fairness and equal treatment at the forefront. We believe that loyalty can be nurtured through tailored offers and a deep understanding of customer preferences. These principles are ingrained in what sets us apart within the market.
How does an international chain like SPAR add value to the local modern retail industry
in Sri Lanka?
At the heart of SPAR’s distinctive identity lies a relentless drive for innovation. This commitment has led to the introduction of pioneering concepts that redefine the shopping experience. In 2018, SPAR took the initiative by unveiling a dedicated hot meal section in its stores, featuring a diverse selection from traditional rice and curry, and kottu to global favourites like pasta, lasagna, roast chicken to pancakes and doughnuts for evening snacks. Complementing this, the “grab and go” concept empowers customers to seamlessly pick up salads, meals, and sandwiches, further enhancing their shopping journey.
However, SPAR’s dedication to innovation does not transcend concepts alone; it also encompasses a transformation in operational methodologies. Through a purpose-designed app, each store undergoes meticulous evaluation and ranking against ten crucial criteria, ensuring unwavering consistency and high standards across the entire network. While community engagement has always been central to SPAR’s ethos, it has sometimes been a quiet endeavour. The “How Big is Your Heart?” initiative epitomizes the brand’s commitment to giving back.
Collaborating with customers, SPAR extends support to diverse causes, including homes for the elderly, children’s orphanages, and campaigns aiding farmers during crises. This philanthropic reach extends beyond local boundaries, leveraging the resources of SPAR’s expansive global network spanning 48 countries. Furthermore, SPAR’s collaboration with local inventors’ associations provides a platform for homegrown entrepreneurs to showcase their innovative products in SPAR stores, nurturing local ingenuity.
Over the past 15 months, SPAR has proactively championed small-scale suppliers and cottage industry businesses, offering them income opportunities and guidance in navigating the complexities of regulatory landscapes. In essence, SPAR distinguishes itself not solely through innovative concepts and operational excellence but through an unwavering commitment to community engagement and support for local entrepreneurs and suppliers. These initiatives underscore SPAR’s dedication to creating a positive impact that transcends the products on its store shelves.
What are the challenges SPAR faces and what does SPAR do differently to address them?
Navigating the business landscape inevitably involves grappling with a series of formidable challenges, and SPAR is currently facing several substantial ones. Foremost among these challenges is the escalating operational costs, particularly in the realm of electricity. To counter this, we’ve proactively embraced solar solutions and innovative energy management practices, including the ‘soft start’ mechanism, meticulously designed to optimize our electricity consumption.
Moreover, the shifting patterns in consumer spending, influenced by factors like heightened taxes and living expenses, have necessitated a strategic response. In light of this, we’ve introduced more compact packaging sizes, equipping customers with the means to manage their budgets effectively. Our data-driven research has enabled us to delve deeper into the evolving preferences of consumers, leading to the expansion of our product range and the provision of competitive pricing for essential items.
Furthermore, a pressing concern is the retention of our valuable staff, who often seek better opportunities elsewhere. To address this challenge, we’ve taken a proactive approach by engaging our teams in enjoyable and rewarding activities, which include stimulating competitions, enticing incentive programmes, and well-deserved recognition initiatives.
Events such as “crazy hair days” and wellness programmes have been implemented to elevate morale and effectively combat stress within our dedicated workforce. In summation, our response to these multifaceted challenges extends beyond the realm of mere salary adjustments. We’ve meticulously crafted a comprehensive approach, placing significant emphasis on engagement, the well-being of our employees, and the promotion of energy efficiency. This approach ensures the cultivation of a motivated and dedicated workforce, furthering our commitment to excellence.
Looking ahead, what are SPAR Sri Lanka’s growth plans?
SPAR’s future roadmap entails a robust expansion strategy, a common trajectory for retailers on a global scale. Acknowledging the paramount importance of scale for success, SPAR is committed to a distinctive approach. Rather than solely establishing a plethora of corporate-owned stores across the nation, our expansion blueprint hinges on strategic partnerships with local retailers.
The spotlight is on collaborating with small and medium-sized businesses, often categorized as the Small and Medium Model Trade (SMMT) or encompassing general trade retailers. This overarching strategy aims at not just growth but the empowerment and elevation of these local entrepreneurs, fostering a symbiotic journey towards prosperity.
The central tenet of our future vision remains steadfast—forging alliances with local retailers to expand its network, marking a pivotal focus in its strategic trajectory