Following on from reporting on its strong 2020 sales growth, we look at how SPAR Austria’s private label strength helped underpin its performance.
Private labels meeting key and emerging shopper demand
Health is a focus for both shoppers and SPAR Austria alike. The retailer, in its 2020 results, noted the on-going double-digit growth for its Natur*pur private label range, which has seen sales increase annually by about 17%. The Natur*pur range is made up of a range of more than 1,100 products and accounts for just over a third of its organic range. However, in 2020, SPAR Austria said the range saw sales rise 28%, underlining shoppers’ increased interest in health-focused products during the year.
Source: IGD Research
Private label ranges helping it support local producers
SPAR Austria is a strong supporter of local and invariably small and medium sized producers in the country. In its results it noted it stocked more than 29,000 regional and local products that are produced by over 2,000 local suppliers, including 500 local bakers. This support came to the fore during the pandemic, where it noted how following regional food producers losing routes to key parts of the market, like restaurants, it had helped about 100 regional producers directly.
Meanwhile, showing how this support continues, SPAR Austria launched a new private label range that showcases local producers on the packaging to both spotlight the work it is doing to support them, but also to showcase the regionality of some of its products. One of the first products introduced as part of the initiative was a honey sourced from Burgenland, Weinviertel and southern Styria.
Shopping restrictions boosted sales of non-food ranges
Echoing other European retailers, SPAR Austria reported how the closure of non-essential stores had led to shoppers buying non-food products at its larger stores. Due to more working from home and home schooling, SPAR Austria reported sales of private label products from its non-food range had risen by 40%. The company said the sales of these goods in-store underlined their importance to shoppers and how making them available to shoppers on an on-going basis was important.
Source: IGD Research
Retail Analysis weekly newsletter