Group says ‘extremely aggressive’ market in SA will imply decrease gross revenue margins …
On Monday, outgoing CEO of The Spar Group Angelo Swartz personally addressed his “scenario” and defined his resolution to go away the group after almost twenty years.
He informed buyers that the reset course of to get the group again on sustainable footing was “exceptionally complicated”.
He says: “The final 5 years specifically have required extraordinary focus and depth. Whereas I’ve been deeply dedicated to the enterprise, its individuals and our retailers, the function has come at a big private price. It’s time for me to prioritise my household after a demanding chapter.”
Swartz was appointed in October 2023. He resigned on Friday and can depart on the finish of February. He’ll stay accessible to the brand new management for the subsequent three months to “assist an orderly transition and help in concluding key strategic initiatives at the moment underway”.
ALSO READ: Spar CEO resigns with CFO to take over in March
This shock information noticed the group’s share value shut 7% decrease at R83.89 on Friday.
Spar share value
Present CFO, Reeza Isaacs, will take over as CEO, whereas COO Megan Pydigadu will develop into CFO.
Isaacs described Swartz’s contribution over the previous 12 months that they’ve been working collectively (Isaacs solely joined in January 2025) as utterly “selfless”.
The group says wholesale turnover in Southern Africa recorded “muted” development of 0.9% year-on-year within the 18 weeks ended 30 January 2026. Its nascent Spar Well being enterprise grew turnover by 23% over the 18 weeks, with the grocery and liquor section up 0.8%. Construct It reported a gross sales decline of two.4% impacted by “sector-wide development stress and opposed climate”.
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In South Africa (excluding neighbouring areas), retail gross sales grew 1.9% year-on-year (and by 2.25% on a like-for-like foundation).
Swartz says that for the primary time in a very long time, this like-for-like development in contrast favourably with its rivals.
Boxer reported like-for-like gross sales development over the 22 weeks to 1 February of two.4%, whereas for Shoprite, this metric for the second half of 2025 (an extended interval) was 1.9%. Decide n Pay reported like-for-like gross sales development in its South Africa enterprise of simply 0.9% over the 22 weeks to 1 February, dragged down by its franchise unit and outfitters. Its company-owned supermarkets noticed gross sales development of two.2%.
Though Spar reported sturdy topline development, bolstered by its Black Friday promotional exercise, this did come at a price to its margin.
Spar says the market was “extremely aggressive” with “low meals inflation and deflation in a number of key classes”. In response to this, it “intentionally intensified promotional exercise to assist retailers, defend volumes, and strengthened its worth proposition”.
This meant that “gross revenue margins in Southern Africa declined relative to the comparable prior interval” which mirrored “an unfavourable gross sales combine, the impression of our focused promotional technique over the Black Friday interval, and our continued funding in loyalty and margin restoration initiatives in KwaZulu-Natal”.
Isaacs wouldn’t be drawn on the small print however did say “margin ranges had been beneath stress”.
Its BWG Group operation in Eire stays the standout performer, with gross sales development of three.1% in native forex which equates to six.1% in rand phrases. General, Spar says group turnover was 2.1% larger over the 18 weeks.
‘Coronary heart of the enterprise’
Swartz says the give attention to returning Southern African to the “coronary heart of the enterprise” must be group’s the primary precedence over the medium time period.
Together with that, the technological transition the enterprise must make (together with the completion of its SAP and ERP rollouts) in addition to the give attention to “retail first” are the three greatest focus areas going ahead.
He says there may be full alignment between himself, the board, and the incoming management staff. He believes that “each Megan and Reeza are distinctive leaders – they’ve been integral to the portfolio simplification, steadiness sheet stabilisation and the event of our margin restoration pathway. I’ve labored alongside them by means of this reset section, and I’ve full confidence of their skill to steer the subsequent stage of incapacity execution”.
Following his exit as CEO, Swartz will stay engaged with the enterprise for the subsequent three months the place he’ll give attention to “on supporting the stabilisation of [the] KZN [region], the optimisation of our company retailer portfolio and undertake the structured handover, specifically, of key retailer relationships to Reeza.”
This text was republished from Moneyweb. Learn the unique right here.
