Spar supplier CJ Lang cashes in on local shopping habits but headwinds remain

The Dundee-headquartered firm, which distributes to hundreds of Scottish Spar stores, also reported a 9.4 per cent rise in annual sales to £212.5 million but warned of an “extremely challenging” economic backdrop.

Releasing results for the year to the end of April, the firm unveiled pre-tax profits of £3m, doubling up on earnings for a second year running.

Bosses said the company’s strategy for growth was paying off, including investment in new stores and more than £2m earmarked for the roll out of its food-to-go offer, CJ’s.

CJ Lang distributes to hundreds of Scottish Spar stores

The group, which was established in 1919, highlighted its strong support for Scottish suppliers and its ability to distribute goods from its single site in Dundee. More than 50 per cent of products on its stores’ shelves are Scottish sourced, from in excess of 150 local suppliers.

Bosses said the business had faced the same supply chain challenges afflicting much of the retail industry, which have been exacerbated by well-publicised driver shortages. A driver incentive scheme to help retain staff has proved successful, then noted.

CJ Lang distributes to more than 300 Spar stores across Scotland and operates 107 company outlets.

Chief executive Colin McLean said: “The previous 12 months saw a significant change in the retail landscape as the impact of Covid-19 was felt.

“As a genuinely Scottish business we have been able to adapt quickly and react flexibly to the changing Scottish retail landscape and continue to provide a first-class service to our consumers, independent retail customers and local communities at a time when they have needed us most.”

He added: “The Scottish retail market environment remains extremely challenging, with significant potential headwinds. Inflationary cost pressures, supply chain impacts, driver and fuel shortages have been well documented, however we remain well positioned to navigate these challenges.”

The firm is pledging record levels of investment into its company owned store estate, with a major programme of store refurbishment works commencing from 2022.

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