Major Trade Networks on the Georgian Market

“The viability of independent dealers is declining”, Spar managing director Miranda Manjgaladze told BusinessPartner TV. 

Based on this situation, Spar offers its own conditions to local street stores in the form of a franchise. “We sell the brand, and they are able to enjoy the Spar’s benefits”, Manjgaladze said. 

The Spar logistics center will partially begin operations in 2020, she added. 

“The logistics centers will ensure a constant supply of products to our clients. As for our communication with suppliers and manufacturers – the shorter the chain from a manufacturer to a client, the lower expenditures for consumers”, Manjgaladze noted. 

In response to the question of whether logistics centers will lower distribution costs, Manjgaladze noted that it is impossible to exclude distribution costs entirely. “The fact is that transforming this chain from a manufacturer to a client will considerably lower consumer expenditures”, Manjgaladze noted. 

Spar has been developing its network in Tbilisi and across the entire country. At this stage, the Spar network trades in 3,200 products in its smallest trade outlet (80 square meter store). The network’s major store in located in Kutaisi, Manjgaladze said. 

“We have entered Svaneti, the Kakheti region. Our company has prepared a development plan for every region of Georgia. We have an aggressive development plan based on not only the network of stores, but also franchising and partnership. About 240 stores of our network generate about a 1 million GEL turnover a day, of which 100 stores are owned by our partner entities”, Manjgaladze said. 

Spar was founded in the Netherlands in 1932, and launched operation in Georgia in 1995, Majgaladze noted.