CJ LANG & Son, the Scottish Spar wholesaler and convenience retailer, has reported a sharp rise in profits during a year it acquired 12 new stores.

But the firm warned that its current financial year “presents challenges we must be prepared for”, highlighting rising costs, changing consumer habits, and supply chain "unpredictability".

The family-owned company, which was established in 1919, posted an 8% rise in pre-tax profits to £4m for the year ended April 28, 2024, on turnover up 14.2% to £253m.

"We had a very strong year," chief executive Colin McLean told The Herald. "A number of factors came together off the back of a strong summer. It was also the culmination of lots of investment. There were lots of new store acquisitions through Scotfresh. This time last year we were bringing those stores on board and Eddy's came on at the end of the financial year."

CJ Lang expanded its retail footprint during the year with the acquisition of Scotfresh Group, which brought nine convenience outlets into the fold, and three former Eddy’s Food Station outlets after that chain had fallen into administration. Eddy's had been run by former Dundee United and retail veteran Stephen Thompson.

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Mr McLean said the integration of so many stores has been "challenging", though all but two of the Scotfresh outlets - Cardonald and Denny - have now been converted into the Spar format.

And CJ Lang chairman Jim Hepburn said it was been pleasing to save the jobs of staff at Eddy's who had been "facing very uncertain times".

"They were delighted by the fact we acquired them and moved very quickly to settle the business back down and back on a secure footing," he said.

In addition to the acquisitions, CJ Lang said it had invested in major store refits in Kilwinning, Lawthorn, and Erskine, and rolled out its Barista Coffee offer, which alongside digital screens and electronic shelf-edge labels are designed to modernise the shopping experience.

The company, which now has more than 300 Spar stores and employs about 1,800 staff across Scotland, said it had also upgraded its head office in Dundee, “encouraging colleagues back into a modern, relaxed environment”.

Turning to the current financial year, Mr McLean said it is a period of "consolidation" on an operations front. But he refused to rule out other acquisitions. "We always have an eye out for opportunities and I think there will be more in the current climate," he said.

"Given what we are suggesting is cautious optimism [over the outlook], I suspect others will be catching a cold or influenza. The market within convenience is certainly changing rapidly post-pandemic, as shopping habits change."

Mr Hepburn added: "While we are not necessarily working on anything just now... we have got the shareholders and the financial firepower to be able to look at things as they may emerge."

The convenience retail market in general is being challenged by the decline of traditional footfall drivers such as cigarette sales, as more and more people switch to vaping products, and newspapers and magazines. Mr McLean said this was why it was so important for operators to attract custom through attractions such as coffee and hot food.

Asked to comment on the firm's performance in the current financial year, Mr McLean said it has been challenged by a "missing summer" because of the inclement weather.

"Convenience retail does very well when the sun shines," he said. "I think it's fair to say with half the population running away to Germany [for Euro 2024] and the rest of us staying behind for a wet, tricky summer, it's been a tough start."

Mr McLean said in a statement: “We have delivered robust growth over the last 12 months and achieved another year of strong sales and profits. However, this year the summer was against us and the year ahead presents challenges we must be prepared for.

“Rising operational costs, combined with changing consumer habits and supply chain unpredictability are critical factors that will continue to shape the year ahead.

“We have had another strong year, but we cannot rest on our laurels. As a genuinely Scottish family based business, we are well positioned to continue our journey to meet the needs and support of our customers with the best that Spar Scotland can offer.

“Our stores serve communities of all sizes across Scotland; our customers are our neighbours. I would like to thank them, along with our suppliers, independent retailers and all our colleagues, for their continued support.”

“Whilst we recognise there are still a number of opportunities to gain from our business turnaround at Spar Scotland, we are delighted that the business has picked up a number of high profile awards over the past 12 months, at both local and international level.”