By Charlotte Mathews

SA's macroeconomic environment looks about to swing upwards, which should benefit the retail sector, Spur Corporation chairman Allen Ambor said in the group's annual report, released yesterday.

"The period ahead should see a more stable rand, lower core inflation, a more acceptable interest rate environment and a simultaneous increase in the disposable income of consumers in our market segment," he said.

In SA, the restaurant franchise group operated 185 Spur Steak Ranches and 44 Panarottis at the end of its past financial year.

Outside the country, it has 20 Spurs and six Panarottis.

"The anticipated improvement in general market sentiment is evidenced by the fact that the planned number of new store openings for the 2004 financial year is notably higher in both brands than was the case in the current reporting period," Ambor said.

Spur group MD Pierre van Tonder said an enormous amount of work had been done in the past year to upgrade the group's manufacturing facilities.

A number of new products were added to the Spur menu in the past year and new dessert menus and table mats were designed and introduced, incorporating the products in a picture format.

Van Tonder said these innovations had a "huge impact" on sales and customer awareness of product quality. "We are looking at further strategies to boost volumes, particularly in the breakfast market," he said. Commenting on innovations in the Spur chain, he said there was a focus on growing existing store turnover, as opposed to growth from new business.

The group's aim is at boosting traffic through the outlets by increasing customer satisfaction.

Panarottis has completed a period of consolidation and although only three new Panarottis stores were opened during this year, Spur Corporation has aligned itself with a leading property developer and this should enable it to secure new sites next year.

Spur's biggest shareholders include the Public Investment Commissioners, with 10%, Allen Ambor with 7,7%, and a number of unit trusts and institutions.

The group's shares were unchanged at 400c yesterday, having gained about 33% in the past year.

Business Day