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Spar owner increases profits and makes stores investment pledge

The Spar wholesaler has added more than 100 staff with the acquisition of a rival convenience store chain.

Colin McLean, chief executive of CJ Lang and Spar Scotland. Image: CJ Lang.
Colin McLean, chief executive of CJ Lang and Spar Scotland. Image: CJ Lang.

Sales and profits have soared for Spar wholesaler CJ Lang, which has pledged further investment in its stores.

The Dundee-based business supplies more than 300 Spar shops in Scotland and also owns 107 company stores.

It has acquired Glasgow-based convenience chain Scotfresh.

The acquisition includes nine stores and sees 130 colleagues join the CJ Lang team. That takes its total staff number to 1,850.

CJ Lang said the Scotfresh stores will retain their existing branding and will be operated as a separate business initially.

Colin McLean, CJ Lang chief executive, said the business was a “good complementary fit”.

CJ Lang boss says firm ‘going in the right direction’

The news comes as newly published accounts for CJ Lang show its pre-tax profits rose to £3.7 million for the year to April 2023, a 10.3% rise on the previous year.

Its turnover also increased 4.2% to £221.3 million over the period.

Mr McLean is pleased with the group’s performance in another year of economic challenges.

He said: “There have been big changes in the business over the past five years – new strategy and new management, but we believe we’re going in the right direction.

Chief executive Colin McLean praised CJ Lang’s staff for their efforts.

“There’s been challenges not only in the past 12 months but in the past five years.

“When we came on board, the company wasn’t making money and during that time we’ve seen the pandemic, an energy crisis, the cost-of-living crisis. It seems to be one thing after another.

“Because we’re Scottish and local, we’ve been able to respond for our customers.

“Our team has done a very good job.”

Continued investment pledge

CJ Lang has also invested heavily invested across its estate, including a £2.5m spend on new forecasting and demand planning systems.

Mr McLean said the business will continue to invest into its stores and systems.

Inside CJ Lang’s Dundee distribution centre. Image: Kim Cessford/DC Thomson.

He said: “Despite the changing landscape, we remain committed to our strategy for profitable growth.

“You’ve got to make money to spend money and I think that’s what is exciting for us now.

“Our profits are seven times what they were five years ago, and we can reinvest and that makes the business stronger.

“We still recognise that we’re in a good place but we’re certainly not complacent. We have an opportunity to take it further.”

A promising start to 2023

Meanwhile, CJ Lang chairman Jim Hepburn said constant investment was key to the long-term success of the business.

He said: “If you look at McColls as an example, if you’re not investing in the business, it’s quite clear you will run out of road.

“We’re investing in the business to make sure we’ve got plenty growth potential for the future.”

Colin McLean, chief executive of CJ Lang and Spar Scotland.

And Mr McLean said CJ Lang has made a strong start to the current financial year.

“We have built good momentum and the Scotfresh acquisition takes us on again, but we know the second half of the year will be tighter.”

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