Spar Group has revised its SAP roll-out technique, separating its finance programs migration from distribution centre operations in an effort to cut back disruption – a transfer that comes because the wholesaler faces a R168.7-million lawsuit from a serious franchisee household over the unique botched implementation.
In a buying and selling replace on Monday, Spar stated the amended strategy will see the group prioritise “functionality enablement fairly than distribution centre integration”. The place the preliminary plan built-in warehouse, finance and buying programs concurrently, the revised technique decouples these parts to minimise execution danger.
The finance transition to a single SAP atmosphere with a unified chart of accounts will likely be accomplished within the present monetary yr, Spar stated, establishing “a single model of monetary information and enabling effectivity and governance enhancements”. A subsequent section will concentrate on drop cargo reporting, credit score administration and pricing governance.
The shift comes after the unique SAP S/4Hana implementation at Spar’s KwaZulu-Natal distribution centre in early 2023 proved disastrous.
As Enterprise Day reported in late January, main franchisee the Giannacopoulos household has filed a R168.7-million lawsuit in opposition to the group within the Durban excessive court docket, alleging the failed roll-out brought on extreme provide chain breakdowns, empty cabinets and heavy buyer losses throughout its 46 Spar, SuperSpar and Tops shops. The household is claiming R142.9-million in misplaced gross revenue for the monetary years 2023 to 2025, plus R25.8-million in damages associated to volume-based rebate schemes it says it couldn’t meet due to the provision failures.
In response to Enterprise Day, business estimates have put the broader value of the SAP failure at about R1.6-billion in misplaced turnover and R720-million in misplaced revenue by September 2023 alone.
Summons
In its buying and selling replace, Spar confirmed it has been served with a summons however famous that every one KwaZulu-Natal retailers affected in the course of the early SAP implementation interval – bar the claimant and one extra retailer – have reached amicable settlements. The group stated it had beforehand tried to resolve the matter with the Giannacopoulos household however discussions failed, and that the present quantity claimed “considerably exceeds” an preliminary declare of R5-million.
The SAP technique revision additionally unfolds in opposition to the backdrop of serious management upheaval on the group. CEO Angelo Swartz resigned on 20 February, simply 28 months into the function, and will likely be changed by chief monetary officer Reeza Isaacs from 1 March. Chief working officer Megan Pydigadu will step into the CFO function. Swartz, who had headed Spar’s KZN division earlier than turning into group CEO in October 2023, not too long ago described the subsequent section of the SAP roll-out as “the only largest danger” to the group’s restoration.
The management modifications add to a interval of appreciable government instability at Spar. Swartz’s predecessor, Brett Botten, departed after lower than two years as CEO amid governance questions, and a number of other senior executives – together with IT management concerned within the unique SAP challenge – have additionally left.
Spar’s buying and selling replace painted an image of a enterprise below strain. Wholesale turnover from persevering with operations grew simply 2.1% yr on yr for the 18 weeks to 30 January 2026, with Southern Africa managing solely 0.9% development. Gross revenue margins in Southern Africa declined, which Spar attributed to an unfavourable gross sales combine, focused Black Friday promotions, and continued funding in loyalty and margin restoration initiatives in KZN.
The group warned that working margin efficiency for the primary half of the 2026 monetary yr is predicted to stay below strain, with restoration “anticipated to be gradual and weighted towards the second half” as cost-realignment initiatives achieve traction and wholesale volumes rebuild.
Spar stated it has additionally recognized structural initiatives to realign its value base, together with distribution community optimisation, centralised non-trade procurement, improved credit score self-discipline and expanded personal label capabilities.
Shares fall
The board stated it plans to nominate a devoted MD for the Southern Africa grocery and liquor section – the group’s core income driver – to sharpen execution and accountability.
Spar’s share worth has been below sustained strain, falling practically 35% over the course of 2025. Shares dropped an additional 5% on Monday following the discharge of the buying and selling replace. – © 2026 NewsCentral Media
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