‘SPAR Scotland is the business to back north of the border’ – Colin McLean

Colin McLean: ‘No one should be able to do Scotland better than SPAR Scotland.’

CJ Lang & Son’s SPAR Scotland business has come a long way in the last few years, but its convenience model now needs to change – and at pace.

That was a key message from CEO Colin McLean at the company’s annual tradeshow and conference, which was held in Aviemore today (25 September) and had the theme ‘Inspiring Success’.

Nearly 900 guests, including company-owned store managers and independent SPAR retailers, attended the event, where they heard how the marketplace is changing and how SPAR Scotland is responding.

“No one should be able to do Scotland better than SPAR Scotland,” he said.

From advertising on STV to its partnership with the Scottish Football Association, and from its CJ’s food-to-go offer to its Barista Bar coffee campaign, CJ Lang prides itself on its ‘local touch’.

“But it’s certainly not easy out there at the moment,” reported McLean. “Our volumes are broadly level with last year, our company store sales are in growth, and SPAR Scotland continues to be the best performing UK mainland RDC in terms of like-for-like sales performance over the last six months.

“But so what? With the relentless growth of the discounters and the grocery market leaders stretching out of the pack, driving like-for-like volume growth is really challenging for the rest of us.

“Consumer confidence is low, customer footfall is flat or down but inflation is rising and continues to squeeze already tight margins. So retail market growth is at best stagnant.”

On top of that, there is further legislation coming that will need to be addressed. This includes HFSS [regulations in Scotland on products that are high in fat, salt or sugar will be aligned with the rest of UK in 2026] and the UK deposit return scheme [set to take effect October 2027].

A transformational approach

To ensure that CJ Lang is addressing challenges and exploiting opportunities in the fast-changing marketplace, its board and executive team reviewed its strategy earlier this year. “I’m sure we’re not alone in requiring a transformational approach,” said McLean. “All retailers are facing intense competition, with shifts in technology transforming how and where customers shop: for example, GenAI enabled shopping, social media selling, and a blended digital experience.

“Our customers tell us that we do have a good offering,” he added. “They do get the good deals, they do understand we’re community driven, they do notice the change with food to go. There are far more positives than negatives, but we need to help them with a much stronger SPAR Scotland value package and help them to shop with confidence. Once the customer is through our doors – physical or digital – we need to make every visit count.”

The importance of value

Offering value is paramount, reiterated senior brand manager Mark Spalding. “Food inflation was at 4.5% in June – the highest it has been since February 2024. This has put further pressure on the cash in customers’ pockets, and as such, they are now very promiscuous in terms of their spending, and it’s got harder since the single-use vaping ban came into effect on the 1st of June,” he explained.

“As convenience store retailers, we were buoyed by the rapid growth in vaping, which made such a positive impact on both sales and profits. However, in the first four weeks after the ban being introduced, total vape sales declined by 32.5%.

“With this pressure it’s more important than ever that we stay focused and do our bit to raise our value perception.”

CJ Lang recently introduced a Tobacco Price Match initiative and will shortly launch a Vape Club, which will involve its business development managers highlighting key deals in the vape category.

It has invested heavily in its Value Deals, which include a loaf of bread for £1 and a pack of six eggs for £1, with a blended 20% margin for SPAR retailers, and now it intends to build on these deals with the introduction of a new value campaign in January.

The company also has ‘huge plans’ for its Barista Bar coffee brand, which was launched in Scotland two years ago in partnership with Henderson Group, SPAR Northern Ireland’s RDC.

Already the second largest coffee brand in Scottish convenience retail, Barista Bar coffee is now offered in more than 100 of SPAR Scotland’s 113 company-owned stores and over 20 of its 200+ independent customers. Sales are up 10% year to date, and over 5,500 customers bought the £3.25 ‘breakfast morning roll and hot drink deal’ in a single week last month.

The CJ’s food-to-go brand is also performing strongly, reported head of food to go Stephen Brown: “From a standing start five years ago, there are now CJ’s food-to-go counters in all of our company-owned stores. Food to go now represents over 10% of our retail sales, and this figure would increase to 13% if tobacco and vaping were excluded.”

A loyalty app, branded with either CJ’s or Barista Bar, will be launched shortly into the SPAR Scotland company-owned store estate as a way of connecting with the 450,000 customers that go into the stores every week.

Investment in digital

The new loyalty app is one example of CJ Lang’s investment in digital, which also includes Facebook, WhatsApp and gamification. Almost 30 company-owned stores now have their own Facebook page, made possible through CJ Lang’s partnership with SocioLocal to strengthen digital marketing across the network of SPAR Scotland retailers. In a single week recently there were over 85,000 impressions – and TikTok is coming next.

As for gamification, following the ‘Win with Every Goal’ campaign this summer, CJ Lang is planning to launch a ‘Spin into Spring’ initiative. This will run from 12 March to 22 April and feature free products, money-off rewards, and a £10,000 cash prize winner.

CJ Lang also remains steadfast in its objective to stand out from its competitors with new product development. “NPD creates excitement in convenience retail and we want to be better at it,” said COO Sonya Harper. “We’re small enough to work at pace but big enough to make an impact. Put simply, we want to be first.”

Addressing suppliers directly, she added: “We can get your stock to 300 stores for a day-one launch without breaking an embargo. Not many wholesalers can commit to that.”

Inbound service levels

Harper also urged suppliers to work more closely with CJ Lang on product supply. “We’ve made big strides in demand planning and forecasting, moving from limited capabilities to an industry-leading system supported by a dedicated team. Our focus is on ensuring that the 300 SPAR Scotland stores we serve get the best possible service levels backed by accurate forecasts and smart ordering. But we cannot succeed alone. We need your partnership.

“Last week, inbound service levels, after adjusting for late deliveries, were only 93.5%. Our inbound ‘on time and in full’ was 84.3%. Across our top 40 suppliers in the year to date, inbound availability is only 91%.

“We need consistency and reliability of supply: sporadic shortages undermine the system. Work with us proactively to solve bottlenecks before they become a critical problem.”

Embracing change

In addition to focusing on availability and reinforcing its existing shopper proposition, CJ Lang recognises and intends to respond to evolving customer needs. “Customers expect convenience, immediacy and flexibility,” said McLean. “Widespread use of GLP-1 drugs like Ozempic means that people are reducing overall intake of snacks, and there is shifting demand towards smaller packs and higher quality fresh and protein items. So we need to adapt our product mix, our delivery options and marketing tools. We need to embrace change but we need to do so profitably.

“We will use a combination of operational excellence, disruptive tactics, and experienced bets on future growth to drive momentum. No stone can be left unturned to take our fortunes forward. The modern convenience model needs to become a trusted, tech-enabled, health-driven food hub rooted in the community.”

He added: “Unlike many other organisations, as a successful family business we can take the right investment decisions for the long term, through both the good times and the difficult times. We’re focused on where we need to be up to 2030.

“We’re going places, and SPAR Scotland is the business to back north of the border. We believe there’s no other wholesaler or retailer in Scotland on a scale that even comes close to us.”