South African retail group SPAR Group has officially exited its international business operations, reporting a cumulative loss of around R5 billion as it dismantles its European footprint.
The group’s recently released financial results for the year ending September 2025 show that SPAR’s overseas divisions, including its subsidiaries in Switzerland, the UK (through Appleby Westward Group, AWG), and formerly Poland, have been classified as “discontinued operations.” These units generated significant losses, leading to the overall R5 billion hit.
In response to the exit and other strategic moves, SPAR has successfully cut its net debt by about 40%, reducing it to roughly R5.4 billion from R9.1 billion in 2024. The group cites strategic disposals and improved working-capital management as key to this debt reduction.
Despite the international losses, SPAR’s core operations in Southern Africa have shown resilience. Revenue from continuing operations increased by 1.6% to R132.4 billion, supported by growth in grocery and liquor sales, and by improved margins in the second half of the year.
Operating profit (excluding extraordinary items) rose to R2.8 billion, and gross profit margins saw a modest improvement, indicating that the retailer still retains commercial viability in its domestic market.
While SPAR has laid out this transformation as a necessary “reset” aimed at strengthening the group’s balance sheet and restoring long-term resilience, the heavy losses in Europe including impairments and write-downs, underscore how difficult the international retail environment has become.
SPAR’s management noted that the strategic exits and streamlining of operations are intended to position the group for “sustainable growth,” giving it a clearer focus on its core markets and freeing up capacity and capital for reinvestment in Southern Africa.
