Spar (South Africa)

Last updated

The Spar Group Ltd
JSE: SPP
ISIN ZAE000058517
Industry Retail
Founded1932;93 years ago (1932)
Headquarters Pinetown, KwaZulu-Natal, South Africa
Number of locations
4,449 (2024) [1]
Area served
Southern Africa
Sri Lanka
South West England
Ireland
Key people
Angelo Swartz (CEO) [2]
Mike Bosman (Chairman)
BrandsSPAR
KWIKSPAR
SUPERSPAR
Spar express
Spar 2U
Pharmacy at SPAR
tops! at SPAR
SaveMor
EUROSPAR
Build it
BEAN TREE
Pet Storey [3]
RevenueIncrease2.svg R152.33 billion (2024) [1]
Increase2.svg R2.11 billion (2024) [1]
Decrease2.svg R352 million (2024) [1]
Total assets Decrease2.svg R59.25 billion (2024) [1]
Total equity Decrease2.svg R59.25 billion (2024) [1]
Number of employees
11,191 (2024) [1]
Website spar.co.za

Spar (officially The Spar Group Ltd) and stylized as SPAR, is a major South African supermarket chain, and the country's largest by total number of stores. Headquartered in Pinetown, KwaZulu-Natal, and traded on the JSE Limited, it holds licenses to operate stores in various countries under the Dutch SPAR International brand.

Contents

Spar was founded in 1932, and uses a mix of corporate and franchise models for its stores. The company also operates Spar express convenience stores, in partnership with Shell, which are located at the latter's forecourts.

The company has licenses to use the SPAR International brand name in 11 countries including South Africa. Outside its home country, Spar has stores in Southern Africa, Sri Lanka, South West England, and Ireland.

The company serves as a warehousing and distribution business, supplying independent retailers (who operate under the Spar brand) with fresh produce and merchandise, as well as various support services. Retailers can use the Spar brand once they sign a membership agreement with the SPAR Guild of Southern Africa. [4]

As of 2024, Spar has around 4,500 stores across 11 countries, and employs over 11,000 individuals. [1]

History

SPAR's operations in South Africa were established in 1963, in Cape Town, by eight wholesalers, who began servicing 500 small retail outlets. The country was the first outside Europe to join the SPAR International organization. [5]

In 1975, Spar launched its SaveMor brand, aimed at serving rural communities. A few years later, in 1979, the group opened a distribution center (DC) in KwaZulu-Natal. [5]

Spar launched its building brand of stores, Build it, in 1985, and in 1990, the group moved its head office to Pinetown, KwaZulu-Natal, and launched the KWIKSPAR small format store chain. The 90s brought more developments for the group, with the establishment of its Eastern Cape distribution center in 1993, and the launch of its large format SUPERSPAR store brand in 1998. [5]

In 2000, Spar launched its tops! at SPAR liquor store brand, and in 2004, the group listed on the JSE Limited, South Africa's largest stock exchange. Spar's third DC was opened in 2009, in Southern Gauteng. [5]

In 2011, the SPAR express convenience store and Pharmacy at SPAR brands were launched. [5]

Spar bought an 80% shareholding in the BWG Group, in Ireland and South West England in 2014. [5]

In 2015, Spar launched a rewards program, whereby e-coupons would offer shoppers discounts on their favorite items. [6]

In 2016, the group acquired a 60% stake in SPAR Switzerland, and in 2017, launched in Sri Lanka through a joint venture between SPAR and Ceylon Biscuits Limited, a Sri Lankan food manufacturer. [5]

In March 2022, the company launched its Spar 2U app-based delivery service, with a pilot at select stores in Joburg. [7]

In May 2023, the company relaunched its rewards program, this time in the form of a Spar Rewards card. The card had over 1 million signups in its first 6 days. 40% of signups were by members new to Spar's rewards programs. [6]

Spar ceased operations in Poland in 2023, after 3 years. [8]

Also in 2023, the group increased its shareholding to 100% in the SPAR Encore private label brand. [5] This followed the group's acquiring of a controlling stake in Encore in 2022. The business serves as a private label supplier for the group, and does the sourcing, packing, and supply of Spar's own-brand products, which includes certain groceries and other types of goods. [9]

In January 2024, Spar announced that it was partnering with suburb-specific delivery providers, including KasiD in Tembisa and Delivery Ka Speed in Mamelodi and Hamanskraal, to facilitate Spar 2U home delivery in townships (traditionally underserved by such offerings). [10]

In February 2024, South African commercial bank FNB partnered with Spar, so that the former's clients would begin earning eBucks rewards points for shopping at Spar. [11]

In May 2025, Spar launched Spar Mobile, a mobile virtual network operator (MVNO), which operates on MTN's network. Spar Mobile was developed in partnership with megsApp, another MVNO that operates using MTN's infrastructure. [12]

The company linked the MVNO's data packages to its rewards program. At the time, Spar said South Africa's airtime and data market was estimated to be worth R100 billion annually, with 86% of transactions being prepaid. [12]

In June 2025, Spar's CEO Max Oliva resigned, after having been with the business for three decades. [13]

In July 2025, Spar partnered with Uber Eats to facilitate home delivery of Spar and tops! at Spar items via the Uber app. [14]

In September 2025, the group announced it had sold its Swiss business for R1 billion, and was planning on selling its UK company as well, in order to focus on South African retail. [15]

In the same month, Spar launched its chain of pet stores. Operating under the new Pet Storey brand, the first outlet opened in Boksburg, with 30 more planned before the end of 2025. [16]

Operations

Spar has 4,449 stores, located across 11 countries in which it has obtained name use licensing from Dutch retail company SPAR International. The former uses a mix of corporate-owned and franchise-owned models. Certain corporate stores are run continuously by Spar, while others are run by Spar only until they're handed over to franchisees. This strategy is used in all of Spar's countries of operation except England, where all its stores are corporate-owned. [4]

The nonprofit SPAR Guild of Southern Africa manages the membership of retailers wanting to use the Spar brand. Once members, the retailers have access to Spar resources. Spar, for its part, sources produce from farmers, and supplies it to stores via warehouses, or via direct-to-store deliveries. [4]

The company operates a total of 12 distribution centers, eight of which are located in Southern Africa. [1]

Spar's store formats are as follows: [17]

Corporate social responsibility

Spar's 2U home delivery service uses electric motorbikes and tricycles, reducing carbon emissions. [18]

The group's SPAR supplier development program is aimed at empowering small retail suppliers. [19]

The group's distribution centers generated 9,761 MWh of power, and recycled over 19,000 tons of cardboard and over 2,300 tons of paper, in the 2024 financial year. In the same year, Spar spent a total of R20.3 million on CSR initiatives.

Through the SPAR Rural Hub program, the group aims to empower small-scale farmers, by providing them with resources, training, and access to markets. [20]

References

  1. 1 2 3 4 5 6 7 8 9 "Integrated Annual Report 2024" (PDF). Spar. 2024. Retrieved 18 October 2025.
  2. "Board of directors". Spar. Retrieved 18 October 2025.
  3. "Our Brands". Spar. Retrieved 18 October 2025.
  4. 1 2 3 "Our Value Chain". Spar. Retrieved 18 October 2025.
  5. 1 2 3 4 5 6 7 8 "Spar - History". Spar. Retrieved 18 October 2025.
  6. 1 2 "Revamped Spar Rewards programme gathers 1 million sign-ups in 6 days". Bizcommunity.com. 23 May 2023. Retrieved 18 October 2025.
  7. "Spar to roll out grocery delivery service in Johannesburg". Bizcommunity.com. 16 February 2022. Retrieved 18 October 2025.
  8. "About Us". Spar. Retrieved 18 October 2025.
  9. Competition Tribunal of South Africa (31 January 2023). "Spar Group Ltd v Spar Encore Ltd (LM133Oct22) [2023] ZACT 20 (27 February 2023) (Reasons)". Law Library. Retrieved 18 October 2025.
  10. "SPAR South Africa redefines local shopping through partnerships". Spar. 25 January 2024. Retrieved 18 October 2025.
  11. Staff Writer (1 February 2024). "FNB expands eBucks Rewards to Spar". MyBroadband. Retrieved 18 October 2025.
  12. 1 2 Jan Vermeulen (14 May 2025). "Large retailer launches mobile operator in South Africa". MyBroadband. Retrieved 18 October 2025.
  13. Staff Writer (10 June 2025). "SPAR South Africa CEO resigns". BusinessTech. Retrieved 18 October 2025.
  14. Staff Writer (8 July 2025). "SPAR grocery and alcohol deliveries now on Uber Eats in South Africa". BusinessTech. Retrieved 18 October 2025.
  15. Bloomberg (9 September 2025). "SPAR sells its Swiss stores to focus on South Africa". news24. Retrieved 18 October 2025.
  16. "SPAR Launches "Pet Storey" a playful new pet store & entrepreneurial opportunity – a wonderland for pets and their owners". Supermarket & Retailer. 19 September 2025. Retrieved 18 October 2025.
  17. "Logos". Spar. Retrieved 18 October 2025.
  18. Hanno Labuschagne (1 December 2023). "Big growth for Spar's rival to Checkers Sixty60". MyBroadband. Retrieved 18 October 2025.
  19. "Value-creating business model" (PDF). Spar. 2024. Retrieved 18 October 2025.
  20. "SPAR South Africa continues to support small-scale farmers". Spar. 16 July 2025. Retrieved 18 October 2025.

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