The Spar group continues to downsize its presence in South Africa, closing more stores in Gauteng as it focuses on core operations.<\/p>\n\n\n\n
The group reported a significant loss of R4 billion for its interim period ended March 2025, driven mainly by impairments in Europe.<\/p>\n\n\n\n
Spar is making a concerted effort to exit its European businesses following a pricey exit from Poland, with the Swiss and UK AWG businesses next in line.<\/p>\n\n\n\n
These businesses recorded aggregated post-tax losses of R4.4 billion, which included impairments of R4.2 billion.<\/p>\n\n\n\n
The group’s continuing operations fared a lot better over the six months, seeing revenue growth of 1.7%, with profit after tax from continuing operations at R768 million.<\/p>\n\n\n\n
The continuing operations mainly reflect the group’s business in the Southern Africa region, which includes South Africa, Namibia, Botswana, Eswatini and Mozambique. <\/p>\n\n\n\n
The vast majority of the operation is in South Africa, however.<\/p>\n\n\n\n
SPAR said that combined grocery and liquor wholesale revenue rose by 1.1% in the region, while retail revenue increased by 1.9% in a difficult trading environment.<\/p>\n\n\n\n
This relatively flat growth was affected predominantly by lower food inflation, post-election unrest in Mozambique and the timing of Easter falling in the second half of the current financial year,<\/p>\n\n\n\n
However, it noted that it was also impacted by store closures in Gauteng.<\/p>\n\n\n\n
While the group noted that it acquired the assets of four retail stores in South Africa, it is still consolidating its presence, having closed a net five stores between September 2024 and March 2025.<\/strong><\/p>\n\n\n\n The number jumps to nine store closures when looking at its operations from the start of the year in January 2025.<\/p>\n\n\n\n Between September and January, the group actually increased its store presence by expanding to three more outlets, taking its total footprint to 2,029 at January 2025.<\/p>\n\n\n\n The group told BusinessTech that its total store numbers for Southern Africa at March 2024 sat at 2,021\u2014nine fewer\u2014comprising 1,086 grocery stores and 935 liquor stores.<\/p>\n\n\n\n The group did not provide a specific breakdown on the specific types of stores, but did note in its January Capitam Markets Presentation that it its SaveMor and SPAR Express format stores were showing growth.<\/p>\n\n\n\n It also noted that the group was staging significant reinvestment in its store network, with 84 major and minor refurbishments ongoing at a cost of R211 million.<\/p>\n\n\n\n Net store selling area is also increasing, it said, moving to about 1.39 million square metres at the start of the year.<\/p>\n\n\n\n The table below outlines SPAR’s footprint in Southern Africa between September 2024 and March 2025.<\/p>\n\n\n\n