South African supermarket retailer SPAR Group is in negotiations to sell its UK business as it shifts focus to its core markets and rolls out new growth formats, the company said on Monday.
The group, which operates several country licenses under the Dutch SPAR brand, has already exited Switzerland and Poland over the past two financial years. It is now in talks to divest its UK Appleby Westward unit.
CEO Angelo Swartz told Reuters that SPAR has “limited appetite” for expansion beyond its current locations, including Southern Africa, Ireland, and Sri Lanka, where it operates a small joint venture.
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Instead, the company plans to grow its upper-end Gourmet banner, designed to compete with rivals such as Woolworths and Shoprite’s Checkers.
SPAR aims to open four to five new Gourmet stores in the next financial year, with a five-year target of roughly 100 outlets, including 30 to 50 new stores in the medium term.
Diversifying beyond food
The retailer also plans to expand into non-food categories, including pet care, liquor, and building materials.
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Financially, SPAR reported that diluted headline earnings per share from continuing operations fell 9% to 795.4 cents for the 52 weeks ended September 2025, down from 873.7 cents a year earlier.
The decline was partly due to higher financing costs linked to legacy Poland debt assumed in South Africa, which resulted in non-deductible interest and a higher effective tax rate.
Group revenue rose 1.6% to 132.4 billion rand ($7.82 billion), with the second half posting a 3.5% increase thanks to stronger grocery and liquor volumes and retailer engagement programs. Gross operating profit grew 2.3% to 2.8 billion rand, supported by solid performances in Southern Africa.
