Spar launched its first-ever gourmet store at Zimbali Oasis, KwaZulu-Natal.
Spar’s 2025 results landed with a weighty thud, immediately reverberating through investor sentiment.
Now the retailer is trying to make up for losses during the period by launching gourmet stores across South Africa.
Spar, one of the country’s largest retailers, lost more than R5 billion during the 52 weeks ended in September and reported another year without dividends. However, it viewed this year as one of cleaning up and repositioning itself, as it exited markets that did not benefit it any more.
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Spar clean ups underperforming markets
The financial results for the period showed that Spar closed down its long-running difficulties in Europe. The first exit was in Poland, followed by Switzerland after years of underperformance.
Together, these discontinued operations resulted in losses of R5.6 billion.
Spar’s operations in the UK, Appleby Westward Group, remain up for sale.
“The UK business continues to be classified as held for sale at 26 September 2025, as the group remains committed to a plan to sell this operation and an active process to locate a buyer is ongoing,” the results presentation says.
Spar enters new market
After another year of difficulty and closure of underperforming stores, Spar has entered the high-end market back at home to make up for the loss. The retailer launched its first-ever gourmet store in Zimbali Oasis, KwaZulu-Natal.
“Set within the heart of KZN’s most exclusive leisure destination, the new Gourmet store introduced a sophisticated retail environment shaped by luxury, craftsmanship and elevated convenience.” the retailer said.
It is worth noting that the retailer already has gourmet-type offerings in some of its stores in Cape Town like Sea Point and Cape Quarter. But the one in Zimbali will expand the offerings by including artisanal breads, patisserie delights, gourmet meals, premium butchery offering specialised cuts and an elegant wine emporium.
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Why a higher market?
Usually businesses would enter the lower market to make money, as the country’s majority cannot afford luxury.
For example, Shoprite launched Shoprite USave, which offers cheaper items. Pick n Pay bought Boxer, which focuses on low-income groups. Spar itself has Savemor in less developed areas. The American retailer Walmart entered the South African market with a promise of “everyday low prices”.
However, repositioning a brand into the premium market is not new, Pick n Pay once tried it. During CEO Pieter Boone’s tenure, Pick n Pay launched its QualiSave stores that will serve low-to-middle income groups, while it planned to gear Pick n Pay stores to serve the higher income group competing with Woolworths. This resulted in a R3.2 billion loss for the retailer.
“The opening [of gourmet stores] also signalled an exciting step forward in Spar’s journey to grow its premium offering, while staying true to our unique model of empowering independent retailers,” said Spar.
Roll out of stores
Spar plans to open more gourmet stores, starting with at least four in Cape Town and Johannesburg by the end of 2026, followed over the medium term by 70 to 100 nationally.
“Spar Gourmet is intended to be more than just a store, it is envisioned to be an experiential destination where customers could discover curated products, enjoy handcrafted flavours, engage with food in a fresh and inspiring way,” said Mpudi Maubane, Spar national PR, communications and sponsorships manager.
“This launch demonstrated what can be achieved when we combine local ownership with the broader Spar mission of uplifting communities through quality retail.”
Spar Gourmet will be competing with Woolworths and Checkers, as these stores serve premium offerings to middle-to-high income groups.
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