Spar

Spar (SPP) – The Weakest Link

We are concerned about the impact which a protracted low topline growth environment may have on SPP’s individual franchisees. Through a series of scenarios, we assess which levels of turnover growth would swing the profitability of a franchise store into an operating loss. We also note an interesting trend in the recent results of the large food retailers which suggest that independent retailers may be regaining market share.