New high-end Spar Gourmet stores rolling out across South Africa

Spar and Checkers are rolling out high-end grocery stores to serve affluent customers and compete with Woolworths Food.

Last week, Spar Southern Africa chief executive Max Oliva revealed that the company will roll out 30 to 40 high-end grocery stores.

The first high-end Spar store, which targets affluent shoppers, is set to open in South Africa in the fourth quarter of 2025.

The new Spar Gourmet stores will target South Africans in the level 7 to 10 Socio Economic Measures (SEM) group.

This group is defined as having high access to resources, infrastructure, and amenities. Simply put, these are wealthy South Africans.

Oliva said the retailer is looking at sites in high-end residential and urban neighbourhoods to access this market.

Spar wants to give South Africans a reason to shop by offering high-end products through key strategic partnerships.

The new Spar Gourmet stores will offer a standardised design and brand philosophy, which the group anticipates will allow for a high-margin retail model.

Through the Private Label Spar Signature Selection range and strategic supplier partners, it will offer differentiated product ranges and bespoke offerings.

It will offer a fresh arena implementation and a product range and assortment specifically targeting wealthy South Africans.

Oliva said Spar’s Private Label Spar Signature Selection will play a big role in the new Gourmet stores strategy.

He highlighted that private labels are increasingly popular globally. 35% of all groceries sold in Europe and 23% in the United States are private label products.

He said these products offer a competitive edge with numerous advantages.

• Affordability – Value has become increasingly important for consumers squeezed by cost-of-living pressures.

• Profitability – Retailers have vertically integrated their procurement to enhance retail margins.

• Quality – Private label products now share comparable quality to propriety brands.

• Innovation – Private label product innovation and speed to shelf is quicker than propriety brands.

• Availability – Retailers now control their own supply chains, allowing them to forecast and predict their own requirements.

• Point of difference – Retailers using private labels as their point of difference create demand for their own products.

“Our private label branding is built around the ‘as good as the best for less’ promise and a ‘double your money back guarantee’,” Oliva said.

He added that Spar guarantees quality that meets or exceeds national brand standards to ensure client satisfaction.

The Private Label Spar Signature Selection includes high-quality meat products, cheeses, high-end canned fish, and wines.

Spar Gourmet store images

Spar Private Label Strategy