100 new SPAR stores coming to beat Checkers, Woolworths, and Pick n Pay in South Africa
Spar plans to launch gourmet stores across South Africa to target the premium market by offering shoppers a high-quality grocery experience.
The retailer wants to launch up to 100 new gourmet-format stores aimed at the premium end of the grocery market.
The retailer said the goal is not to glamorise the brand but to fix longstanding inconsistencies in how Spar stores look and operate.
This will be done while competing more effectively with Checkers, Woolworths, and Pick n Pay, especially in areas where shoppers increasingly expect a higher-end experience.
Speaking to Daily Maverick, Spar CEO Angelo Swartz said that the retailer’s biggest challenge has been the wide variation between stores operating under the same banner.
For decades, identical Spar signage appeared in areas with very different consumer needs and store standards.
This made it difficult for the group to communicate what level of service or product quality shoppers could expect when walking into any particular outlet.
According to Swartz, the new gourmet concept is intended to create clearer differentiation, helping customers understand the purpose of each format.
He noted that several Spar stores—especially in parts of Cape Town—have already been offering more premium-style products and services.
The new format formalises that approach, allowing Spar to distinguish stores that cater to higher-income markets without confusing core customers who remain focused on price.
The move also reflects the realities of a market where Checkers, Pick n Pay, and Woolworths have grown rapidly at the top end.
With competition intensifying, Spar’s strategy is partly about limiting customer loss to rivals.
Swartz described the Gourmet concept as providing “strategic coverage” in areas where shoppers are increasingly opting for more curated and convenience-focused grocery experiences.
The group plans to open three to four Gourmet stores in 2026, starting in Cape Town and Johannesburg.
Over the medium term, between 70 and 100 such stores are planned nationally, using a mix of conversions and new developments.
A more premium shopping experience
Spar has already launched its first Gourmet outlet at the Zimbali Oasis in KwaZulu-Natal. The store, situated in an upmarket leisure development, offers features not typically found in standard Spar stores.
This includes more specialised butchery cuts, a wider wine selection, and a stronger focus on ready-made meals.
The layout and product range are aimed at matching customer expectations in affluent areas rather than setting a new universal standard for the entire group.
The store serves as a test case for Spar’s attempt to create clearer distinctions between its different store formats.
The retailer’s shift comes at a time when it is trying to stabilise its performance in South Africa after facing significant financial losses in its international operations.
In its latest results for the year ending 26 September, Spar reported a profit of R1.1 billion from its continuing operations.
However, its discontinued operations, which include its troubled Swiss and English businesses, recorded losses of R6.1 billion.
These setbacks have put more focus on its Southern African division, which continues to perform better despite pressure on consumer spending.
Locally, the business benefited from improved wholesale execution, enhanced retailer support programmes, and lower fuel-related logistics costs.
These factors helped stabilise operations in the second half of the financial year. Merchandise revenue in Southern Africa grew 2.9% in the second half of FY2025, lifting full-year revenue by 2.3%.
Sales in the groceries and liquor segment rose 1.9% year-on-year, while its Build it division increased revenue by 2.4%.
Spar’s diversification efforts also include expanding into pet retail through its Pet Storey concept, launched in September.
Swartz said this category is growing quickly and was previously dominated by smaller independent stores.
By the end of November, Spar had converted all 12 of its Pet Masters stores to the new format, and early indications point to further expansion.
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