Top South African retailer dumps UK business

SPAR has reached an agreement to sell one of its businesses in the United Kingdom, Appleby Westward Group (AWG), as part of the group’s ongoing turnaround efforts.

The sale of AWG follows SPAR’s exit from its Polish and Swiss operations, though the group is retaining its presence in Ireland.

On Monday, 18 May, SPAR confirmed that it has entered into a sale agreement with AF Blakemore & Son (AFB) for its UK business.

AFB is a family-owned SPAR UK wholesaler with over a century of experience, and will be taking over AWG’s company-owned stores, warehouses, and logistics infrastructure.

SPAR said negotiations to sell another 63 AWG stores to third-party operators are already at an advanced stage.

This sale not only marks a milestone in SPAR’s current turnaround plan, but also the end of an era for the South African group’s operations in the United Kingdom.

SPAR was founded in the Netherlands in 1932 and has since spread to 48 markets across four global regions.

SPAR South Africa was established in 1963, over three decades after the group was founded, and was the first country outside Europe to join the SPAR voluntary food retail network.

The SPAR South Africa Group grants sub-licences to independent retailers to operate stores under one of its four formats, with almost all of the brand’s current store portfolio being independently owned.

While a South African company, it also has operations outside the country, largely stemming from 2014, when the group decided to aggressively expand its global footprint.

When it came to the United Kingdom, the group decided to acquire an 80% stake in the BWG Group rather than buying into the UK directly.

The BWG Group was a large food retail and wholesale supplier based in Ireland, and held a strategic stake in AWG.

Thus, AWG became the official SPAR regional wholesaler for the South West of England.

However, this would not last, as SPAR’s financial and operational struggles in South Africa and losses in some of its global businesses have led the group to streamline its operations, including exiting some European markets.

So far, this has included SPAR’s Swiss and Polish businesses, with AWG becoming the latest.

“This transaction reflects the deliberate actions we are taking to reposition SPAR for long-term sustainability and growth across the network,” SPAR CEO Reeza 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.”

The group emphasised that it will retain its interests in Ireland, with the sale of AWG freeing up management capacity and capital for both its Irish and South African businesses.

“The disposal is a key part of a broader strategic transformation designed to improve earnings and create a more agile, customer-led, future-fit business,” SPAR said. 

“Importantly, the transaction is expected to result in no cash outflow for the group, supporting SPAR’s continued focus on financial resilience and balance sheet stability.”

“By sharpening our focus on our core markets, we are better positioned to support our retailers, unlock growth opportunities, and continue delivering the convenience, value and trusted service that customers expect,” Isaacs said.

AWG’s sale will be completed in stages from June to September 2026.