How do you manage change? Interview with André Scherrer from Spar

Christoph Wildhaber: Who is Spar?

André Scherrer: In 1989, the Spar Group Switzerland acquired the license for all of Switzerland from Spar International. Since 2016, it has been a subsidiary of the South African Spar Group Ltd. The Spar Group Switzerland comprises 250 Spar neighborhood markets, Spar Express convenience stores, and Spar Mini stores, as well as eleven TopCC Cash & Carry wholesale markets. We employ over 2,200 full-time equivalent employees—including 254 apprentices. Spar focuses on neighborhood grocery stores, a wide selection of fresh products, attractive prices, a diverse product range including local and organic products, and friendly, knowledgeable staff. Spar Group Ltd. generated total revenue of CHF 7.5 billion in 2021.

Where is Spar International's headquarters located?

In the Netherlands. The company operates in 48 countries under a licensing agreement. This makes SPAR the largest voluntary retail chain, with approximately 13,500 supermarkets and total sales of 39.8 billion euros. SPAR was founded in the Netherlands in 1932; the name means «fir tree» in Dutch.

How is Spar Switzerland's distribution system structured?

Our distribution system is well diversified. One-quarter of the stores are company-owned, while the remaining three-quarters are operated by independent retailers under a franchise system. Independent maxi///-partners and other customers are supplied by Spar.

Franchise partners often seek stability and, as a result, are wary of change. Are this desire and the need to adapt to changing conditions in your industry mutually exclusive? Or is this actually part of the concept?

Franchise partners certainly need stable profitability. I am proud to say, however, that they also recognize the need for continuous improvement. What really matters is that franchise partners have the opportunity to maintain or improve their profitability. It is standard practice in the retail industry that this is only possible through ongoing adjustments and optimizations.

How does Spar address the financial and operational challenges franchisees face when changes are necessary?

We maintain a close and friendly relationship. We see ourselves as service providers and strive to make your lives as easy as possible. In return, we expect maximum performance and a fully customer-focused approach at the point of sale. Thanks to our own stores, we understand the operational challenges and do everything we can to resolve them with the highest quality and efficiency. Our franchise partners benefit from this. Through active and trusting communication, we identify our franchise partners’ financial challenges early on and find effective solutions.

What methods have proven effective in motivating SPAR's sales partners to embrace change?

A major advantage is that we operate our own stores. This allows us to test new concepts, refine them, and demonstrate the benefits and lessons learned to our franchise partners. Our franchise partners can be confident that new concepts will work at the point of sale.

Last year, Spar made a major acquisition of gas station stores by taking over 60 Avia gas station stores operated by Store Service AG. What challenges arose during the integration into the Spar concept, and how did the Avia partners handle these changes?

Working with Avia has been a real pleasure. The integration went smoothly, and we’ve already been able to renovate 60 percent of our stores and transition them to the Spar-express concept. The biggest challenge is certainly looking toward the future—specifically, the new demand for alternative fuels such as e-charge or hydrogen. But thanks to our innovative Avia partner companies, we already have attractive solutions for that as well.

Can we draw any lessons from this for the sales industry?

Sales is about humanity. When we, as franchisors, create optimal economic conditions for our franchisees, that’s good. But what really matters is going one step further. If we can also ensure that our franchise partners feel understood and comfortable, and if we foster an atmosphere of joy and enthusiasm, then we generate passion—or as we say at Spar—«our Spar family.».

The interview was conducted by Dr. Christoph Wildhaber, managing director of Swiss Distribution. He has been working in the field of distribution for 30 years, including as a lawyer.