South Africa's SPAR Group is said to be considering selling its UK business, Appleby Westward Group (AWG), to an unnamed, UK-based buyer with strong regional experience in the South West.
AWG, which services SPAR stores in South-West England, contributes £250m (6 bn rand) to the group’s turnover.
The potential buyer, which SPAR did not name, was "well positioned to develop and grow AWG in South-West England," it said.
"The group approach has been to engage parties whose interests align with the growth ambitions of the local management teams and retailer partners, and will ensure continuity for employees, suppliers and customers," SPAR said.
The group, which owns several SPAR country licences of the Dutch SPAR group, has been trimming its international operations in order to "maximize the return on capital allocated". Last year it sold its loss-making Polish business.
Following today’s release of SPAR’s figures for the 26 weeks ending 28th March 2025, Aliyah Siddika, Retail Analyst at GlobalData, stated, “While its H1 results were unimpressive, as it failed to achieve revenue growth, SPAR has made strides in the first half of the year to consolidate its proposition and improve profitability.
"The retailer ceased operations in Poland, and the subsequent decision to discontinue its activities in Switzerland and the United Kingdom (AWG) will allow it to concentrate on its more successful market: Southern Africa.
In Switzerland, SPAR has been engaging established parties with extensive business interests in the region and experience in European food retail and distribution, it added.
The group reported a marginal 0.2 per cent decline in turnover for the 26 weeks ending 28 March 2025 and yet experienced 1.6 per cent growth in operating profit, reflecting its continued commitment to reduce costs at the KwaZulu-Natal distribution centre.
The Swiss business, with 300 stores, contributes 16 billion rand ($899 million) to group turnover, while the South-West England unit contributes 6 billion rand.'
Internationally, SPAR will be left with Ireland, its biggest overseas business, and a joint venture in Sri Lanka.
