Less than a year ago, the SPAR Group, after reviewing its assets, decided to sell the Polish business. In our country, 194 branches operate under this logo. Now the company announces that it has reached a milestone in negotiations with the entity interested in the Polish branch.
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They did not wait for SPAR to be sold in Poland. They develop business under their logo
Spar Group has a buyer for the Polish business
– Further to previous announcements regarding the sale of shares in Spar Polska, the Group informs shareholders that it has reached a milestone in signing the key terms of the transaction. (…) The interested entity wants to engage in further activities of the Spar brand in Poland – we learn from the announcement.
The ongoing negotiations, if successfully concluded, may have a material impact on Spar Group shares. – Shareholders are therefore advised to exercise caution when making decisions related to trading in shares – explains the company.
Spar announced that the exit from the loss-making Polish unit will free up approximately $27 million a year. The company is currently restructuring its liabilities, reducing debt and focusing on the domestic market. The company's exit from the smallest market will help it focus on South Africa, which generates over 60 percent. revenues. Spar faces rivals such as Shoprite Holdings and Pick n Pay Stores who are transforming their grocery businesses into well-defined premium and discount segments – a strategy that Spar currently lacks.
Spar has 194 stores in Poland
The group has just announced its financial results for the 6 months of the financial year ended March 31, 2024. The commentary states that the company is on track to exit the Polish market by September 2024. The operating loss of SPAR Polska for the period in question is approximately R720 million. (1 R = PLN 0.22, i.e. approx. PLN 158 million). The turnover of the Polish branch is R 1,573 million, i.e. over PLN 345 million. At the end of the period, the number of Spar stores in Poland was 194 (7 more than a year earlier.
Let us remind you that the SPAR Group entered Poland in 2019 with the takeover of the business of the Piotr i Paweł chain, as well as obtaining a license to operate the SPAR brand in our country.
