SPAR to leave UK market through sale of stores, distribution operations
Company says the move will allow it to concentrate on its primary markets and business priorities
UK – South African grocery retailer SPAR Group announced on Monday plans to withdraw from the United Kingdom market by selling its South West England business to A.F. Blakemore & Son and disposing of dozens of additional stores in agreements worth around US$17.41 million.
As part of the transaction, A.F. Blakemore & Son will take over the South West England SPAR licence together with 71 stores, warehousing facilities, logistics assets and supply agreements linked to independent retailers operating in the region.
At the same time, SPAR said another 63 stores would be transferred to third-party operators as it moves to complete its exit from the UK retail market.
Exit Strategy
The retailer stated that the combined transactions are expected to generate gross proceeds of approximately US$17.41 million from the disposal programme.
Earlier, SPAR had already recorded an impairment charge of €78.5 million, equivalent to about US$85.1 million, related to its UK business operations, while the company added that the latest disposal process is not expected to result in any additional cash outflows.
According to the group, leaving the UK market is intended to remove the continued pressure on earnings and management resources, while also allowing the retailer to redirect capital and operational focus toward its core regions and strategic objectives.
The company further indicated that completion of the transactions is expected to occur in phases between June and September 2026.
SPAR has faced challenges in its UK operations in recent years as retailers across the sector continue to deal with changing consumer spending patterns, rising operating expenses and increased competition in the grocery market.
Meanwhile, the company did not disclose the identities of the operators acquiring the additional 63 stores or provide further financial details regarding the separate sale agreements.
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