CJ Lang & Son, the Dundee company which runs convenience store chain Spar, has posted a profit of £4 million.
The family-owned firm has had one of its busiest years, acquiring former Dundee United chairman Stephen Thompson’s Eddy’s Food Station stores and 9 Scotfresh shops into the business.
Turnover rose to £253m — up more than 14% in the same time period last year — while pre-tax profits exceeded £4m to April 28 2024, an increase of 8%.
Bosses are remaining “pragmatic” about the results, adding the “non existent summer” will have a significant impact on next year’s profits.
And chair Jim Hepburn warned rumours of an increase in employer National Insurance contributions could result in “fewer jobs” available at Spar over the coming year.
CJ Lang posts profit
The Longtown Road headquartered company supplies more than 300 Spar shops in Scotland and also owns 107 company stores. It has a staff roster of more than 1,800.
Retailers have been hit recently by the cost-of-living crisis, energy increases and legislation like the sugar tax.
But chief executive Colin McLean points out CJ Lang’s overall growth remains “robust” in a highly competitive market.
“Dundee might be Scotland’s ‘sunniest city’ but elsewhere, summer this year basically did not exist,” he said.
“A lot of our seasonal stores in particular do very well when the sun shines. For example, those on the North Coast 500.
“There has been a lot of investment in those stores over the last few years.
“We talk about summer being like Christmas in convenience retail, but given the difficult summer we have just had, this year has been difficult.
“And with looming budgets and rising costs, it is probably best to be pragmatic about where the future is going at the moment.
“The market is hugely competitive. The UK has some of the best retail companies in the world and convenience retail has its own niche, but the reality is there is a number of costs and legislation looming which hits the business.
“We have delivered robust growth over the last 12 months and achieved another year of strong sales and profits.
“We have had another strong year but we cannot rest on our laurels.
“As a genuinely Scottish family based business, we are well positioned to continue our journey to meet the needs and support of our customers with the best that Spar Scotland can offer.
“Our stores serve communities of all sizes across Scotland; our customers are our neighbours. I would like to thank them, along with our suppliers, independent retailers and all our colleagues, for their continued support.”
National insurance hike warning
Prime minister Sir Keir Starmer refused to rule out a National Insurance increase for employers in this month’s Budget.
This could lead to a number of unexpected costs being passed on to businesses, with CJ Lang chair Jim Hepburn warning this could result in “fewer jobs”.
He said: “The prime minister (refused to rule out) on Tuesday that employer contributions on national insurance are going to increase.
“That has certainly not been in our thoughts going in to this year and it is an extra cost that cannot be avoided, other than doing something productivity wise, which ultimately might result in fewer jobs.”
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