David Sands, the Scottish convenience store chain, managed strong profits growth in the latest year despite increases in the costs of basic foods and the efforts of giants such as Tesco to muscle in on smaller players� territory.
David Sands, the Scottish convenience store chain, managed strong profits growth in the latest year despite increases in the costs of basic foods and the efforts of giants such as Tesco to muscle in on smaller players' territory.
The Kinross-based firm, which operates 24 stores in Fife and Perthshire, grew pre-tax profits by 17% to £1.1m in calendar 2007, helped by investment in new stores and what directors claimed was a successful focus on the communities in which it operates.
Despite gathering gloom in retail circles, directors of the family-owned business plan to continue expanding in the current year with two new stores and a significant upgrade of one in Perth.
However, in the report to the company's latest accounts filed at Companies House they note that the company will make the move against the backdrop of increasing competitive pressures.
"Major multiples (are) continuing to increase their market share. The majors have entered the convenience sector with Tesco now the biggest convenience retailer in the UK.
"This may affect individual store locations and it does make finding the right sites for future growth difficult."
The directors also noted that David Sands had faced "tremendous pressure" on food costs, especially for basics such as bread and milk.
"In a competitive environment, it has proved difficult to pass on the full price increase."
Turnover rose 17% to £29m.
The company maintained net profitability by limiting the increase in the wage bill to 12%. Average employee numbers increased to 560, from 487 in 2006.
In what was billed as a radical move, in August David Sands hired Ewen Chisholm from London-based Harris International Marketing as its first chief operating officer.
David Sands swapped the managing director's job for the new strategic role of chief executive.
