SPAR is gearing up for a major push into South Africa’s high-end grocery market with plans to introduce up to 100 upscale stores designed to offer a more refined shopping experience.

The retailer believes this strategy will help resolve longstanding inconsistencies in the appearance and performance of its outlets, while strengthening its position against strong rivals such as Checkers, Woolworths, and Pick n Pay—particularly in wealthier communities where expectations are rising.

CEO Angelo Swartz told Daily Maverick that SPAR’s biggest hurdle has been the significant variation in quality across stores that all operate under the same brand. For years, identical SPAR signage appeared in neighbourhoods with vastly different consumer profiles, making it difficult for shoppers to know what level of service to expect.

The new premium model aims to clarify those differences. Swartz noted that certain stores—especially in Cape Town—have already evolved naturally into more luxurious offerings. The Gourmet format formalises this trend, allowing SPAR to better segment its network without alienating value-focused customers who remain central to the brand.

The shift also reflects the changing retail landscape. Competitors have aggressively expanded their premium footprints, making it crucial for SPAR to protect market share where consumers are turning toward convenience, curated selections, and fresh-food focused retailing.

To execute the strategy, SPAR expects to launch three to four Gourmet stores in 2026, starting in Cape Town and Johannesburg. Over the medium term, the plan is to grow the format to as many as 70–100 locations nationwide through both new builds and upgrades of existing stores.

Upmarket test store sets the tone

The first SPAR Gourmet outlet recently opened at Zimbali Oasis in KwaZulu-Natal. Positioned within an affluent estate, the store features a broadened wine range, premium butchery cuts, and a greater emphasis on ready-to-eat meals—distinguishing it clearly from a traditional SPAR.

Rather than redesigning the whole network, the pilot serves to assess how refined offerings can be tailored to specific demographics while improving format clarity within the wider group.

Domestic recovery now a priority

These changes come as SPAR focuses on stabilising its core South African operations following major losses abroad.

For the financial year ended 26 September, continuing operations generated R1.1 billion in profit, but discontinued businesses in Switzerland and the UK posted heavy losses of R6.1 billion.

As a result, South Africa has become even more critical to group performance. Better wholesale efficiencies, stronger support for franchisees, and lower fuel costs helped strengthen results in the second half of the year.

Southern African merchandise revenue rose 2.9% in that period, contributing to a 2.3% increase for the full year. Grocery and liquor sales grew 1.9%, while revenue at its Build it hardware brand improved 2.4%.

Growth in new categories

SPAR is also diversifying through Pet Storey, a dedicated pet retail chain introduced in September. Swartz said the segment is expanding rapidly and was previously dominated by independent retailers. By late November, all 12 former Pet Masters outlets had already been converted, with more rollouts expected.

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