Massive shift for SPAR

The SPAR Group has finalised the sale of its Polish operations, ending its presence in the European country and signalling a massive shift in the retailer’s focus to local operations.

The transaction, which was initially disclosed on 4 September 2024, is now unconditional and was implemented today, 31 January 2025.

The decision to sell the business follows a comprehensive review of SPAR’s operational challenges in the Polish market and its investments in the region.

SPAR said that it has initiated a strategic shift to streamline its portfolio, concentrating efforts on markets with well-established foundations and the potential for higher returns.

SPAR sold the business to Specjal, which is a well-established Polish company that it believes will push the brand forward.

The disposal is subject to a total estimated net recapitalisation payment by the SPAR Group to SPAR Poland, which amounts to PLN590.7 million (R2.67 billion).

In September 2024, SPAR said that its Polish business amounted to R185 million, making the exit an extremely costly affair for the group.

“The finalisation of this important deal marks a significant shift for SPAR and reflects our commitment to optimising our portfolio and growth in core markets,” said Angelo Swartz, CEO of The SPAR Group.

“This, along with our continued financial discipline, strategic resource allocation and investments into innovation, strengthens our business and sharpens our focus on areas where we can have the greatest impact.”

“While this decision marks the end of our presence in Poland, we are confident it will drive our long-term success and enable us to deliver sustained value to our shareholders, as we fulfil our vision of becoming the retailer of choice.”

“We wish the Specjal team success as they embark on this exciting new chapter and warmly welcome them to the SPAR family.”

Speaking on SPAR’s exit from the Polish business earlier this month, Swartz said that the group’s foray into Poland brought hard lessons, key of which is that the company knows local best.

He said that the experience also impacted the group’s views on future expansion outside South Africa’s borders.

“For now, our focus is on the heart of our business, being South Africa,” he said. “Our energies are best spent at home focusing on the challenges of the local market and expanding our business.”