Spar remains unchallenged: sales boom and market shares increase!

Spar remains unchallenged: sales boom and market shares increase!

Wien, Österreich - The food dealer Spar presented its year for 2024 today and can grow growth of 5.1 percent compared to the previous year with sales of EUR 10.4 billion. The SPAR group, which operates over 3,000 markets in Austria and six neighboring countries as well as 31 shopping centers and 227 Hervis branches, has been able to defend their market leadership in the Austrian food trade. With a market share of 36.9 percent, the distance to the main competitor Rewe, which is now 33.6 percent, was expanded. These developments were published by Leadersnet

The strategy of Spar is clear: the focus is on a high proportion of freshness, regionality and a mixed offer of brands and own brands. The proportion of own brands in the food sector has increased to 45 percent, which underlines doubling over the past 20 years. The own brands "S-Budget" and "Spar Premium" in particular show strong sales growth of 8.5 percent and 11 percent, while the vegan products "Spar Veggie" also shine with an increase of 13 percent, such as reported.

investments and expansion

Spar plans an investment package of 900 million euros for 2025, of which over 400 million euros are to flow in Austria. Around 60 new, modernized or expanded markets in the country are planned, especially in Vienna, where there are still expansion opportunities. These371 action plans aim to further strengthen the market presence and increase customer satisfaction. The SPAR merchants who offer personal responsibility and entrepreneurial action have developed better compared to branched markets.

However, SPAR also faces challenges. The loss of the Hervis daughter chain, whose turnover dropped from 510 million euros to 490 euros and whose loss doubled to almost 64 million euros in 2023, burdened the balance. 13 Hervis branches were closed last year. There are also conflicts in price negotiations, for example with the Lower Austrian Molkerei NÖM, and Spar defends itself against a Hungarian special tax that cost around 75 million euros in 2023.

market analysis and future outlook

The analysis of the Austrian food retail shows that three large trading groups, namely Spar, Rewe and Hofer, cover over 85 percent of the market. Even if discounts like Lidl win on market shares, SPAR remains the clear market leader. These market developments and the increasing competition force all actors to develop innovative approaches to improve customer loyalty. supermarket blog points out that the prices for food in 2022 and 2023 have increased significantly, 2024, however, calculated with an inflation of only 2.1 percent is.