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Retailer Spar says it will launch a voluntary severance programme in certain parts of the business to improve operational efficiency and competitiveness.<\/p>\n
This is part of a broader reset aimed at aligning Spar\u2019s cost base with current trading conditions and \u201cto ensure that Spar is structured appropriately in order to support future sustainable growth\u201d.<\/p>\n
Read:
Spar chair Mike Bosman shares inside story of shock CEO departure
Shock Spar CEO resignation<\/p>\n
\u201cThe process does not affect the group\u2019s retailers or services provided to Spar\u2019s retail network,\u201d the company said in a Sens notice.<\/p>\n
\nThe share price has fallen 46% over the last 12 months after a disappointing trading update and the shock resignation of CEO Angelo Swartz in February.<\/p>\n<\/blockquote>\n
The company blames fierce competition, deflation in certain categories, tight consumer spending and sluggish recovery in KwaZulu-Natal after repeated floods.<\/p>\n
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Prior to that, a bungled SAP software implementation was blamed for supply chain breakdowns and a turnover loss of R1.6 billion in 2023.<\/p>\n
Read:<\/p>\n
Spar\u2019s incoming CFO is a former Woolworths director<\/div>\nWhy I stepped down as Spar CEO \u2013 Swartz<\/div>\nGroup chair Mike Bosman, speaking at a recent AGM, described the sudden departure of Swartz \u2013 who will be replaced by CFO Reeza Isaacs \u2013 as partly personal and partly due to the strain of helming a business whose share price had been severely hammered.<\/p>\n
The group\u2019s retail margins have been under pressure, in part due to promotional strategies over the Black Friday period in 2025, when trading was worse than expected.<\/p>\n
\nThe group has 6\u00a0778 staff, about two-thirds of them in southern Africa and the rest in Ireland.<\/p>\n<\/blockquote>\n
This does not include employees at the independent Spar retail stores, which operate under a franchise model.<\/p>\n
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There was dissent at the recent AGM, with 61% voting against the proposed executive pay policy. The disquiet appears to have been triggered by a proposed R9.5 million payout to outgoing CFO Mark Godfrey, who resigned in December 2024.<\/p>\n
\nPart of the problem faced by the group is its complex business nature, falling somewhere between a wholesaler and a retailer.<\/p>\n<\/blockquote>\n
In Ireland, it operates six retail brands, a wholesale arm, and a food services business. In southern Africa, it has 2 500 Spar outlets, around 400 Build it stores, 800 Tops liquor outlets, and six regional distribution centres.<\/p>\n
The group owns multiple well-known brands, including Express, KwikSpar, SuperSpar, Spar, and Gourmet.<\/p>\n
To arrest the cratering share price, incoming CEO Isaacs will need to articulate a clear vision for the group and outline how revenue and margins can be restored to respectability after several dismal years.<\/p>\n
Read\/listen:<\/p>\n
Spar ditches Pinetown, books R30m loss on HQ sale<\/div>\nBloody nose for Spar as Europe write-offs top R7.5bn<\/div>\nWho moved Spar\u2019s cheese?<\/div>\n<\/p><\/div>\n