Spar Group warns of lower earnings and launches recovery plan

Spar Group has issued a trading update warning that full-year 2026 earnings are expected to underperform the previous year due to mounting pressure in its core grocery and liquor businesses. The retailer signaled a multi-year recovery plan rather than a quick fix, which includes revising debt covenants and appointing a new chair and additional independent directors by early November.

As part of its integrated recovery strategy, Spar will pilot a refreshed version of its Spar2U on-demand shopping service starting in December. This initiative aims to improve customer relevance and follows previous efforts to compete with services like Shoprite’s Checkers Sixty60. The group is also working on repositioning private-label brands and optimizing merchandising, pricing, and technology.

To address operational challenges, Spar executives and representatives from the Guild, which represents independent Spar retailers, recently held working sessions in KwaZulu-Natal to resolve practical obstacles and establish shared accountability regarding the rollout of omnichannel services.