SPAR Announces Store Closures Amidst Financial Challenges

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Global retail giant SPAR has announced the closure of several stores in different regions as the company grapples with financial and operational challenges.

The affected locations include South Africa and Poland, with other regions facing temporary disruptions.

Closures in South Africa

SPAR South Africa has confirmed plans to shut down 13 grocery stores in the South Rand Region. The decision stems from a combination of factors, including erratic supply in Mozambique, reduced promotional activities, and lower sales volumes.

Despite these challenges, the company’s online shopping platform, Spar2u, has shown remarkable growth, with a 285% increase in order volumes compared to the previous year.

Exit from Poland

In Poland, SPAR’s South African division had acquired an 80% stake in the Piotr i Paweł supermarket chain in 2018. However, sustained financial losses have forced the retailer to sell its Polish operations. The sale to local distributor Grupa Specjał was completed on January 31, 2025, marking SPAR’s exit from the Polish market.

Past Temporary Closures in the UK

In December 2021, SPAR stores in Northern England faced widespread closures due to a cyberattack. The incident impacted IT systems, leading to the temporary shutdown of approximately 300 stores. While operations have since resumed, the event highlighted vulnerabilities in retail cybersecurity.

Impact on Other Markets

There are no recent reports of store closures in Kenya or other African markets where SPAR operates. The retailer continues to expand in certain regions while optimizing its business strategies in others.

As SPAR navigates these challenges, the company is focusing on digital transformation and operational efficiencies to sustain its market presence. Industry analysts will be watching closely to see how SPAR adapts to evolving consumer demands and economic pressures in the retail sector.

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