Turnover at Spar, Eurospar, Mace, and Londis business in Republic rises by 7% 

the Spar Group, whose shares trade on the Johannesburg stock exchange, said turnover at the BWG division increased by over 7% in euro terms. Picture: Jane Mingay/PA

Sales at the more than 1,000-plus grocery outlets and wholesale businesses that operate in the Republic under the Spar, Eurospar, Mace, Londis, and XL names are outperforming its fellow group operations abroad, despite the cost-of-living crisis, according to its South African owner. 

In an update, the Spar Group, whose shares trade on the Johannesburg stock exchange, said turnover at the BWG division increased by over 7% in euro terms, or by over 19% in South African rand terms, in the 20 weeks to the middle of February.

Financial figures from BWG, which is now fully owned by the Spar Group, includes the operations of Appleby Westward in the south-west England, but predominantly reflect the retail and wholesale operations in the Republic. 

The BWG performance was much better than the Spar Group's retail operations in Switzerland, and,  in particular, in Poland where turnover declined in the period, according to the trading update. 

Spar Group said in the stock market statement it had posted "a resilient trading performance" across its international operations. 

"The group’s diversified strategy has ensured delivery of a strong top line, aided by the strength of foreign currency against the rand. This trading performance should be viewed against the backdrop of tough trading conditions in all markets, as consumers continue to seek greater value, in light of ongoing inflationary and other cost-of-living pressures," the South African company said. 

Spar Group also said it was looking at "various debt structuring options" for the group, but the plans would only likely to be implemented once the company had disposed of its operations in Poland. 

"All financiers continue to remain supportive, and the group does not intend to raise any capital from shareholders," the company said in the statement. 

Spar Group, which had previously announced plans to sell its Poland unit, said significant progress had been made in the process. However, negotiations were still at an early stage, it said. 

The trading update comes as part of its financial results for the first six months of the financial year that runs to the end of March. Spar Group said it will publish those half-year earnings on June 5. 

Spar Group had reported last year that BWG across all its operations in the Republic and the south west England had performed strongly in its 2023 financial year, "notwithstanding difficult trading conditions, including an increased regulatory environment, staff shortages, rising operating costs and very strong competition".