Spar Group Ltd. is planning to acquire smaller retailers to help South Africa\u2019s second-largest grocer by revenue expand beyond the food segment and win market share in a struggling economy. <\/p>\n\n\n\n
The company, which is selling its loss-making Polish unit, wants to increase South Africa\u2019s contribution to its revenue to 70% in five years from 60%, Chief Executive Officer Angelo Swartz said. <\/p>\n\n\n\n
Spar, which also owns a chain of building materials stores, plans to expand into pet shops and two other categories, he said.<\/p>\n\n\n\n
Swartz said the proposed expansion will help take on competition fighting to lure shoppers in Africa\u2019s slowest-growing economy after war-ravaged Sudan, and Equatorial Guinea. <\/p>\n\n\n\n
Companies, including Spar, are banking on the nation\u2019s new so-called government of national unity to prioritize economic growth, which is key to adding jobs and increasing disposable income.\u00a0<\/p>\n\n\n\n
\u201cThere\u2019s a shift happening in retail in South Africa, particularly among the food retailers who have scale advantage,\u201d Swartz, 42, said.<\/p>\n\n\n\n
The larger grocers are trying to maximize their \u201cadvantage by going into categories that we weren\u2019t involved in before. That naturally leads to growth outside of the core supermarket business,\u201d he said.<\/p>\n\n\n\n