Business

SPAR selling another international business

Luke Fraser

 ·29 May 2026

The SPAR Group is in the process of selling its UK business, which will add to the retailer’s exits from Poland and Switzerland.

The group has entered into an agreement with A.F. Blakemore & Son, a popular SPAR wholesaler, to sell its UK asset, Appleby Westward Group (AWG).

The business is selling its right to operate SPAR in South-West England, its 71 company-owned stores, a house, logistics infrastructure, and associated independent retailer supply agreements.

In a new trading update for the 26 weeks ended 27 March 2026, the group said the disposal should be completed by September 2026.

AWG will then be classified as a discontinued operation under IFRS 5.

SPAR entered the UK in 2014 when it acquired a majority stake in BWG Group, which in turn owned the Appleby Westward Group. It took full ownership in 2021.

However, amid a challenging global macro environment and years of misfires by the group, it has decided to focus more on South Africa.

The group recently sold its Swiss business to Tannenwald Holding, which was sold for a total equity value of CHF 46.5 million (R1 billion).

Notably, the sale resulted in a cash outflow for the group of CHF 31 million (R680 million), which included a settlement with the Swiss Competition Commission. However, Tannenwald took over all the debt.

In another move, the group sold SPAR Poland for R185 million, but had to inject R2.7 billion to recapitalise the business for its buyer Specjal.

The group has, however, decided to retain its Irish business, which remains a strong performer for the group.

Financial pain

The sales come amid a challenging period for the group, which expects a large decline in earnings, as per its trading update.

The group said that wholesale turnover from continuing operations grew marginally year-on-year during the current period.

In Southern Africa, SA Groceries & Liquor revenue growth remained below internal selling price inflation, which in turn was below the official food Consumer Price Inflation (CPI).

The group said that this limited revenue growth reflected real volume and competitive pressure. That said, momentum improved in the second half of the current period.

The group said that SPAR Health delivered strong growth across wholesale and Scriptwise pharmacy channels.

It added that Build it posted positive like-for-like growth, and was supported by infrastructure spend and a recently launched rewards programme.

SPAR2U also continued to scale, with e-commerce order volumes up strongly year-on-year. It added that retailer loyalty remained strong.

It added that Ireland, where the group is keeping its stake, saw a strong performance, with top-line growth in local currency.

When looking at the group’s total earnings, which includes discontinued operations, the group expects basic earnings per share to rise by over 100% from a loss of 2,211 cents to between 70 and 80 cents.

However, headline earnings per share (HEPS) are expected to decline by over 55% to a range of 104-133 cents per share.

Looking at continuing operations, the group expects earnings per share to decline by over 55% to a range of 140-180 cents per share.

The group said that the earnings decline reflects a combination of underlying trading conditions and current-period operational anomalies, including weak KZN performance and elevated Black Friday spend.

The group was also impacted by impairments of historical asset carrying values and a more conservative approach to debtors provisioning.

The group will provide further details in its official interim results, which will be presented on 10 June 2026.

“In response to margin, cost and competitive pressures, the group has identified and is executing on a set of structural initiatives intended to realign its cost base and improve operating leverage over time,” it said.

“Further, a refreshed leadership team is in place to accelerate execution and sustainable long-term performance.”