SPAR International Announces Expansion Into Mongolia
18 July 2016: SPAR, the world’s largest food retail voluntary chain, has today announced a new partnership with conglomerate Max Group LLC, to open its first stores in Mongolia. The partnership, which will see up to 60 SPAR-branded multi-format stores in Mongolia by 2020, was made at an official signing ceremony which took place during the visit of the Dutch Prime Minister, Mark Rutte, to Mongolian capital Ulaanbaatar.
---Dutch Prime Minister Rutte welcomes deal between SPAR International and Max Group at signing ceremony in Mongolia
Max Group is one of Mongolia’s leading retailers operating the existing chain of Max Food Supermarkets. The new partnership will see these stores transfer to the SPAR brand, and the opening of new SPAR supermarkets from 2017 onwards. The Netherlands-based SPAR International reported global retail sales in 2015 of €33 billion from over 12,100 stores across four continents. Mongolia brings to 43 the number of countries where SPAR has operations globally.
Prime Minister Rutte, along with a high-level Dutch delegation, was visiting Mongolia to promote trade with the Netherlands in the region and to attend the 11th Asia-Europe Meeting (ASEM) Summit. Speaking at the signing of the contracts between SPAR and Max Group, the Prime Minister Rutte, said, “It is greatly encouraging to see a company like SPAR, which started as a partnership of Dutch retailers and wholesalers more than 80 years ago, helping bring retail best practice to the Mongolian marketplace.”
SPAR International Managing Director, Tobias Wasmuht said “SPAR is delighted to be launching in Mongolia in partnership with the Max Group. We see Mongolia as a dynamic and rapidly developing consumer market with a growing demand for modern world class food retail. We are highly confident that we can build on our strong presence in the region by leveraging our scale with the SPAR operations in neighbouring Irkutsk, Russia and Inner Mongolia, China. This collaboration combined with our modern retail formats, supply chain and international sourcing as well as investing in the training and development in people locally will act as a significant support structure for the growth and development of SPAR in Mongolia. I would like to take the opportunity to thank the Ministry of Foreign Affairs of the Netherlands who were instrumental in facilitating the partnership between SPAR and the Max Group.”
Max Group LLC is a family business established in the 1980s which has a wide variety of operations and business interests including supermarkets, fast food restaurants, department stores, real estate, precious metal mining and is the country’s largest dairy producer and milk bottler. Max Group LLC already employs over 2,000 people in Mongolia. Max Group President, Ganbaatar Dagvadorj said “Bringing the words leading retail chain, SPAR, to Mongolia is not just beneficial to Max Group it is a big opportunity for Mongolia as well and I am very excited about this partnership. Max is dedicated to bringing the SPAR’s commitment to excellence in fresh, passion for quality, outstanding service and exceptional value to consumers in Mongolia.”
About SPAR International SPAR International is the world’s largest food retail voluntary chain with over 12,100 stores worldwide and global retail sales of €33 billion in 2015. SPAR International unites and works in partnership with independent retailers by working together to share global scale and expertise to enhance the competiveness of its retail partners worldwide and build the SPAR brand internationally. In emerging markets such as in Asia, SPAR has specialised in developing modern supply chains to enable the efficient movement of goods from local producers to the shop shelf.
About Max Group Max Group LLC is a family business founded by two brothers in the late 1980’s; it operates traditional supermarkets, is the country’s largest dairy producer and milk bottler and owns and operates fast food restaurants (has the Burger King restaurant franchise). In addition to its food businesses, Max Group LLC operates department stores (has the British Home Store franchise), has a real estate division and also conducts precious metal mining. Max Group LLC employs over 2000 people in Mongolia and their retail division sales are approx. €50 million. The company value statement and mantra is ‘For a Better Mongolia’.