'Tough times for all' warning as Dundee wholesaler CJ Lang reports profit hike

CJ Lang, the Scottish wholesale business and Spar operator, has warned of “tough times ahead for all” after reporting a double-digit hike in profits despite a dip in sales.

The Dundee-headquartered firm, which is more than 100 years old and distributes to hundreds of Scottish Spar stores, said that despite the challenging backdrop it was investing in its food-to-go offering, improving its profitability and pricing and optimising its distribution processes.

For the year to the end of April, the group posted pre-tax profits of £3.4 million, a rise of 10.7 per cent, with margins up 0.3 per cent to 23.3 per cent. Turnover dipped 0.1 per cent to £212.3m. It said the the results had been delivered against the backdrop of an “extremely challenging economic climate which continues to drive changes in shopping behaviour”.

The relaxation of Covid restrictions saw a return to “some pre-pandemic shopping behaviours”, the firm noted, while the habits of shopping locally were retained by a “noticeable proportion of consumers who had discovered the benefits of shopping at their local convenience store”.

Family-owned CJ Lang is more than 100 years old and distributes to hundreds of Scottish Spar stores.

CJ Lang chief executive Colin McLean said: “We know that there are tough times ahead for all and our primary focus is to offer a value proposition to help support our customers and staff through the ongoing uncertainty. Being solely Scottish focused has enabled us to adapt quickly and react flexibly to the changing retail landscape and to continue to provide a first-class service to our independent retail customers, consumers and communities at a time when they have needed us most.”