SPAR cutting jobs

South African retailer SPAR has announced the implementation of a voluntary severance programme in certain areas of its business.

This comes as the retailer is looking to cut costs as part of a turnaround plan aimed at improving SPAR’s competitiveness and financial health.

On Tuesday, 17 March 2026, SPAR informed shareholders that it will be implementing a voluntary severance programme in certain areas of the business.

“The severance programme is part of a broader reset designed to align the Group’s cost base with current trading conditions and to ensure that SPAR is structured appropriately in order to support future sustainable growth,” the company explained. 

“The process does not affect the group’s retailers or services provided to SPAR’s retail network.”

“The group remains focused on strengthening operational performance and supporting SPAR’s network of independent retailers.”

SPAR did not provide any other details regarding which business units would partake in the voluntary severance programme.

In SPAR’s 2025 Annual Report, the retailer revealed that it had 4,657 permanent employees in its Southern African business, which spans South Africa, Namibia, Botswana, Mozambique, Eswatini and Lesotho.

In its Irish business, SPAR recorded 2,121 employees across the company’s 1,161 stores and 26 distribution depots in the region.

The voluntary severance programme comes as part of SPAR’s ongoing turnaround, with the retailer looking to boost its competitiveness and financial health following years of challenges.

In its latest trading statement for the 18 weeks ended 30 January 2026, SPAR revealed stagnant growth and significant margin pressure within a highly competitive retail landscape.

It showed that the retailer’s turnover grew by a modest 2.1%, while its gross profit margin shrank.

The company said its smaller profit margin reflects an unfavourable sales mix, the impact of its targeted promotional strategy over the Black Friday period, and its continued investment in loyalty and margin recovery initiatives in KwaZulu-Natal.

In addition, the retailer reported that it faces a rising cost base, which includes wage inflation and continued heavy investment in IT infrastructure and the SAP system rollout.

“In response, and as previously communicated, SPAR has identified a set of structural initiatives to realign its cost base with prevailing trading conditions and medium-term margin objectives,” the retailer said in its trading statement.