Woolworths rethinks Spar concession deal

Woolworths Group has axed Spar concessions in smaller Woolworths Local outlets after sales of other products in the stores fell.

The group is now planning to test Spar concessions in up to 50 bigger Local stores. The original trial ran in four stores of about 4,000 sq ft, housing up to five chiller cabinets. Woolworths and Spar are also working on a further trial using three larger stores measuring more than 5,000 sq ft, to start in June.

Woolworths food and drink buying manager Amanda Wilson says the concessions were affecting the rest of the stores. “We need to do a bit more work on the format and we will do some more trials later in the year,” she says.

Woolworths has also installed Spar concessions with about 13 chiller cabinets in 20 Woolworths General Stores, each of which contain a pharmacy.

These are larger stores of about 7,000 sq ft, with longer opening hours of 7am to 11pm. The Spar concessions sell ready meals, wines and beers, sandwiches, snacks and convenience ambient food products.

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