Spar's Sales Up by More Than 15% Last Year

The retail company Spar Hungary achieved gross sales of HUF 1,023.2 billion in 2023, 15.8% more than in the previous year, while the volume of products sold declined by about 4% year-on-year last year, the company's President and CEO, Gabriella Heiszler said at the company's annual press conference in Budapest on Wednesday.

She pointed out that Spar Hungary closed 2023 with a loss similar to the previous year, the exact amount of which will be published in the company's annual report at the end of May.

The company paid almost HUF 30 billion in special tax last year. Without that tax, levied by the government on retail businesses, it would have closed the year with a profit, she added in response to a question.

Spar Hungary operated 641 stores at the end of 2023, 273 of which were franchises. The number of employees was around 14,000, with almost 4,000 more working in the franchise network's stores.

Last year, HUF 22 billion was spent on investments, less than in the previous year, the CEO said.

The company opened five new stores and rebuilt four in 2023, with the number of renovated stores being the main reason for the low number, according to Gabriella Heiszler. The CEO said that tax legislation, especially the special tax, is forcing the company to rethink what it spends on.

The company's franchise network expanded by 25 stores in 2023, with a total turnover of HUF 134.5 billion. A range of more than 16,000 products is available to Spar stores," Managing Director Zsolt Szalay said.

Another Managing Director at Spar Hungary, Eduard Vonier said: the company's own-brand sales rose by 19.3% last year compared to the previous year, while sales volume in this category also increased by 3.8%. Own-brand goods accounted for a third of Spar's total sales last year, he said.

The managing director said the popularity of own-brand products was due to their good value for money. This is the company's weapon against the discount chains, as consumers have access to these products at a good price and with good quality, he explained.

Asked about Spar's possible exit from Hungary, Gabriella Heiszler said it was up to the owner to decide, but she did not expect the company to leave the country.

The CEO also said that they had not received any official notification of government legal action against Spar. They are working to end the conflict, she said.