Convenience retailer sees opportunities
The Dundee-based firm, which owns the SPAR franchise in Scotland, said it is well-placed to grow its market share with a strategy that includes persuading consumers to do more shopping in outlets that trade under the fascia and growing its store portfolio.
Writing in the company's latest accounts, for the year to 30 April 2014, directors said the trading outlook is expected to remain challenging and to become increasingly competitive.
They noted the main uncertainties facing the group included the extent to which consumer spending continues to be constrained due to economic and behavioural factors and the impact of further competition.
Owned by the Scott- Adie family, CJ Lang previously noted that cash conscious consumers had been exercising more discretion on food spending amid a squeeze on household incomes. Pay rises lagged inflation for a long period before the recent fall in oil prices helped to ease some of the strain on family finances.
In the accounts, directors said the multiple supermarkets continued to increase their presence in the convenience store sector. The likes of Sainsbury and Tesco have made a big push for growth in this sector by opening smaller "local" outlets.
However, CJ Lang wrote: "The directors believe that the Group, through its association with SPAR, is well placed to grow its own market share in the long term."
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