SPAR Group is thinking about selling its UK operations to focus on its strengths. The South African supermarket chain wants to grow, so it may sell its UK business. The company’recently exited Switzerland and Poland, showing it is committed to focusing on its main markets.
SPAR plans to grow its premium Gourmet brand, which competes with Woolworths and Shoprite’s Checkers. The company wants to open four or five new stores each year, aiming for 30 to 50 new stores over time. SPAR hopes to increase its market share in Southern Africa and in smaller markets such as Ireland and Sri Lanka.
Besides groceries, SPAR is adding pet supplies, alcohol, and building materials to its stores. The company wants to find new ways to make money and give customers more options. SPAR thinks these products fit well with its grocery business and can help increase profits.
CEO Angelo Swartz said SPAR does not plan to expand much outside its current markets. Instead, the company wants to make its existing businesses stronger while looking for new ways to grow.
In the past year, SPAR’s earnings per share dropped by 9% to 795.4 cents. This was partly because of higher costs from old debt in Poland, which led to more taxes.
Despite these challenges, the company’s total revenue rose 1.6% to 132.4 billion rand ($7.82 billion). Results improved in the second half of the year, with a 3.5% increase thanks to higher grocery and liquor sales and better engagement with retailers. Gross operating profit grew 2.3% to 2.8 billion rand, mainly because of strong results in Southern Africa. SPAR’s focus on premium products shows it wants to be more efficient, earn more, and invest in areas with strong growth potential. Experts say this strategy should help SPAR compete better and take advantage of trends, especially in higher-end food and lifestyle products.
