Following the voluntary trading update released on 23 February 2026, the Spar Group has reaffirmed its continued focus on operational discipline, margin recovery and long-term value creation.
Spar group CEO Reeza Isaacs. Image supplied
“I step into the CEO role with absolute clarity on where we are and what must be done to accelerate the turnaround of our core business. Spar remains a strong, cash-generative business with a powerful independent retailer network. Our focus now is on increasing the pace of execution - strengthening performance in Southern Africa, improving margin resilience and ensuring that the work already done to simplify the group and strengthen the balance sheet translates into sustainable performance improvement.”
Isaacs said recent trading performance reflects deliberate actions taken to support shoppers and independent retailers amid ongoing consumer pressure.
“Heightened promotional activity in a highly competitive, low-inflation environment supported customer value but impacted margin conversion. We are now refining our promotional approach and strengthening commercial discipline to ensure that revenue growth increasingly translates into sustainable profitability.”
Isaacs emphasised that disciplined execution across Spar’s core Southern African operations remains the group’s immediate priority, supported by continued investment in its independent retailer network.
“Our strength lies in our independent retailer partnership model. We are focused on enabling retailer success through better procurement, private label expansion, improved distribution efficiency and more disciplined promotional execution.”
Isaacs added that strengthening alignment with retailers is a key leadership focus.
“In my first weeks as CEO, I am prioritising direct engagement with Guild leadership structures. Strong retailer alignment is fundamental to restoring performance momentum and ensuring we move forward together.”
Chairman Mike Bosman noted that the group has made significant progress in strengthening its balance sheet and simplifying its portfolio, positioning Spar to focus on disciplined operational execution.
“Spar remains a fundamentally strong business, with around 4,400 stores across nine countries and annual revenue of approximately R140bn. Over the past two years, we have reduced debt by more than half, positioning the group for a more capital-light, cash-generative future. This provides meaningful operational runway, with clearly defined levers to support margin recovery under the close oversight of the Board."
All ordinary and special resolutions tabled at the AGM were passed by the requisite majorities except for the two non-binding advisory votes, which require further consultation with shareholders.
“Spar views shareholder feedback as an important component of its governance framework and will continue constructive engagement with shareholders to ensure appropriate alignment on remuneration matters going forward,” said Bosman.
The group confirmed that balance sheet simplification remains on track following the exits from Poland and Switzerland, with the divestment of the South-West England operations well advanced. Debt levels have reduced materially over the past two years, while lenders remain engaged and supportive of the group's strategic direction.
“Capital discipline remains central to every decision we take,” Isaacs said in closing. “Our focus extends beyond financial recovery to building a stronger, more resilient Spar - one that continues to support retailers, create local economic opportunity and remain the first-choice retailer for the communities we serve.”
Further detail on operational progress and margin initiatives will be provided at Spar’s interim results, scheduled for release on or about 10 June 2026.
