Spar Group Ltd. has appointed Lwazi Koyana as chairman and former Massmart chief executive Grant Pattison as an independent non-executive director, as the South African retailer seeks to reset its board after months of friction with independent store owners and mounting pressure on earnings and debt.

Koyana, a chartered accountant who has served as acting chairman since Aug. 17, takes the role with immediate effect. He joined the board in May 2019 and is its longest-serving member, having chaired the nominations and remuneration committees during a period marked by overseas difficulties, rising borrowings and a troubled software rollout.

He brings more than 30 years of experience in investment management and corporate finance, Spar said. Koyana is founder and managing director of Nations Capital Projects and holds several governance roles, including as an independent director of Concor Construction and non-executive chairman of Steve Biko Academic Hospital.

His other positions include a seat on Rhodes University’s council, where he chairs the audit and risk committee. He previously served on the boards of Afgri, SecureData, Mineworkers Investment Company and the Wholesale and Retail Sector Education and Training Authority, and chaired the South African Qualifications Authority until 2022.

Board search gathers pace

The appointments follow a Sept. 28 announcement that Spar’s nominations committee had hired an independent search firm to help recruit a chair and deputy chair. The process unfolded after former chairman Mike Bosman and deputy chair Shirley Zinn resigned on Aug. 17, citing a breakdown in relations with the Spar Guild.

Pattison, who spent about 16 years at Massmart, will join Spar’s board on Feb. 25, 2027. As Massmart chief executive, he oversaw Walmart’s 2011 acquisition of a 53% controlling stake. He later led NRG Renew Africa and became chief executive of Edcon when the retailer, which owns Edgars, entered business rescue.

He has accepted Spar’s offer and resigned from the Pick n Pay board with immediate effect on Oct. 26. Spar had also approached turnaround specialist Phil Roux, a former Nampak chief executive, about joining the board, but said Friday that he had declined the offer.

Guild pressure shapes choices

The board changes come amid a strained relationship with the Spar Guild, which represents the group’s independent retailers. In a leaked letter in September, the guild backed Roux for chairman and called for changes to the board and executive team after a prolonged period of weak performance.

The guild also proposed Conrad Isaacs, managing director of Spar Eastern Cape, and Kevin O’Brien, the group’s sustainability executive, as directors. Spar said it consulted management, shareholders and the guild before settling on the appointments, with three priorities emerging from those discussions.

The company said it wanted directors able to work with independent retailers as partners, bring deep retail experience and demonstrate a record of leading businesses through turnarounds. The choices are intended to steady relations with store owners while the retailer works through operating and financial strains.

Debt and earnings weigh

Those strains are evident in Spar’s half-year results for 2026. Net debt increased to R7.3 billion ($433.36 million) from R5.4 billion ($320.5 million) at the end of September 2025, while operating profit fell 45% to R740.5 million ($43.95 million), the company reported.

Revenue rose 1.7% to R50.8 billion ($3 billion), but sales growth remained modest. Grocery and liquor wholesale revenue increased 1.1%, while retail sales also advanced 1.1%, both below internal selling price inflation of 2.6%, pointing to continued pressure on volumes.

Spar operates a wholesale, warehousing and distribution network supplying more than 4,500 stores, most independently owned, across South Africa and other markets. Its branded operations extend across Southern Africa, Ireland, Switzerland and Poland, with a joint venture in Sri Lanka, making relations with franchisees central to its business.