Spar in talks to sell UK unit as focus shifts to core markets

Source: Reuters/Siphiwe Sibeko

The South African company, which owns several country licences of the Dutch Spar group, has exited Switzerland and Poland over the past two financial years and is now in talks to dispose of its UK Appleby Westward unit.

"We will dispose of the UK business," CEO Angelo Swartz told Reuters. "We are negotiating that disposal as we speak."

Swartz said that Spar has "limited appetite" for expansion beyond its current locations, such as Southern Africa, Ireland and Sri Lanka, where it has a small joint venture.

He outlined plans to grow its upper-end Gourmet banner, which is meant to compete with rivals such as Woolworths and Shoprite's Checkers.

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The group plans to add four to five new Gourmet stores in the next financial year and has a five-year target of about 100 outlets, including 30 to 50 new stores in the medium term.

It also plans to expand into categories beyond food such as pet care, liquor and building materials.

Earlier, the retailer said its diluted headline earnings per share from continuing operations, a key profit measure, fell 9% to 795.4 cents for the 52 weeks ended September 2025 from 873.7 cents a year earlier.

The group saw higher financing costs linked to legacy Poland debt assumed in South Africa, which resulted in non-deductible interest and a higher effective tax rate, it said.

Group revenue rose 1.6% to R132.4bn ($7.82bn), with the second half logging a 3.5% increase on stronger grocery and liquor volumes, as well as retailer engagement programmes.

Gross operating profit increased by 2.3% to R2.8bn, supported by solid performances in Southern Africa.