HUNGARY: Spar could adopt CBA, Coop, Real franchise model | Progresiv

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. 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. (www.bbj.hu)