Spar could adopt CBA, Coop, Real franchise model
Spar’s first response to the increased grocery store supervisory fee – from HUF 900 mln to HUF 9 bln per year – seemingly designed by the government back in January to target large multi-national supermarket chains, was to slowdown recruiting and ramp up the revision of store performance, both of which signaled possible store closures.
Now it looks as though Spar is moving toward a model used by CBA, Coop and Real as a longer-term survival strategy, hvg.hu revealed yesterday. All of the aforementioned stores operate franchise networks across the country.
Under the new law, chains can avoid heavy fees if their ownership is divided through a franchise network. Spar is reportedly actively seeking franchise partners who would commit to stocking 85% of goods purchased from Spar.
The company informed hvg.hu that 70 employees have already applied for the opportunity to operate a franchise business, of which 25 already exist in Hungary. It was previously reported that Spar would open 30-40 new Spar Express stores this year in OMV gas stations, following last year’s successful pilot in five locations.
ADVERTISEMENT
Hungary Agricultural Output Value Grows by 6.5%
Hungarian-American Business Chamber Established in Chicago
Number of Registered Jobseekers Down 3% in November
Mulled Version of Belle-Vue Kriek Makes Debut at Advent Fair
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
