The SPAR Group has confirmed the sale of its United Kingdom business, Appleby Westward Group (AWG), marking the next stage in the group’s long-planned streamlining of its international portfolio.
According to the retail group, the move marks another important milestone in the simplification of its international portfolio, as it focuses on South Africa.
The group has entered into an agreement with A.F. Blakemore & Son (AFB), a well-known family-owned SPAR UK wholesaler with over a century of experience, for the sale.
The deal includes the sale of AWG’s company-owned stores, warehouses, and logistics infrastructure.
Additionally, negotiations are at an advanced stage to sell another 63 AWG stores to third-party operators, it said.
Notably, while this marks the end of its UK operation, the group said it will retain its Irish interests.
SPAR South Africa entered the UK market in 2014 when it acquired a majority stake in BWG Group, which in turn owned the Appleby Westward Group. The group took full ownership in 2021.
However, following significant financial losses and pressures over the past few years, the group has been making a concerted effort to exit most of its international operations.
The sale of the UK business follows the sales of SPAR Switzerland and SPAR Poland for the group.
SPAR sold its Swiss business to Tannenwald Holding, selling its entire shareholding in SPAR Switzerland for a total equity value of CHF 46.5 million (R1 billion).
The sale resulted in a cash outflow of CHF 31 million (R680 million) for the group, which included CHF 11.5 million (R250 million) reserved for a settlement with the Swiss Competition Commission.
However, Tannenwald has assumed all of SPAR Switzerland’s outstanding debt to third-party financiers, reducing the group’s overall debt.
In a similar move, the group disposed of SPAR Poland for R185 million, but still needed to inject R2.7 billion to recapitalise the business for buyer Specjal.
The deal removed a loss-making business from SPAR’s balance sheet.
SPAR Group CEO, Reeza Isaacs, said the move is about “making the business leaner and more effective”, freeing up management capacity and capital for the core Southern African markets.
“This transaction reflects the deliberate actions we are taking to reposition SPAR for long-term sustainability and growth across the network,” Isaacs said.
“We are simplifying the Group, strengthening our balance sheet, and ensuring our leadership focus and capital are directed toward the areas where we can create the greatest value.”
Importantly, unlike previous exits, the UK business exit is expected to result in no cash outflow for the group. It was presented as a discontinued operation in its last set of results.
The sale is expected to be completed in stages between June and September 2026.
