South Africa’s SPAR Exits UK in $17.4M Strategic Disposal

SPAR Group, South Africa grocery retailer, has agreed to exit the United Kingdom market in a combined disposal valued at approximately $17.4 million, marking a decisive step in its global portfolio restructuring.

The transaction includes the sale of its South West England business to A.F. Blakemore & Son Ltd, alongside the disposal of 63 additional stores to independent operators.

Portfolio simplification and capital discipline

The move follows earlier exits from Switzerland and Poland, as SPAR accelerates efforts to reduce debt, streamline operations, and concentrate resources on higher-return markets in Southern Africa and Ireland.

According to the company, the divestment “enables a clean exit from the United Kingdom,” eliminating operational distractions while freeing capital for core-market expansion and strategic priorities. Completion of the transaction is expected between June and September 2026.

Asset transfer and deal structure

Under the agreement, A.F. Blakemore will acquire the SPAR South West England licence, 71 stores, warehouse infrastructure, and associated distribution and retailer supply agreements. The additional 63 stores will be transferred separately, bringing total gross proceeds to roughly £13 million ($17.4 million).

SPAR has previously recorded an €78.5 million ($91.3 million) impairment on its UK operations, meaning the exit is expected to have no additional cash outflow impact.

Refocusing on core markets

SPAR operates as a wholesale and distribution network supporting more than 4,500 independently owned stores across Southern Africa, Ireland, Switzerland, Poland, and Sri Lanka.

The group continues to lean on its franchise-style model, with strong emphasis on logistics efficiency and local retailer empowerment. Its agricultural development programme also supports small-scale farmers through training, financing access, and supply-chain integration.

A.F. Blakemore & Son Ltd is a major UK family-owned food retail, wholesale, and distribution group, anchored in the fast-moving consumer goods sector. Founded in 1917 and headquartered in Willenhall, West Midlands, the company is a key SPAR UK partner and one of its largest members.

With an estimated £1.2 billion ($1.6 billion) turnover and about 7,500 employees, it plays a significant role in Britain’s grocery retail, convenience store, and supply chain distribution network.