SPAR’s Gourmet Push: Why 100 New Premium Stores Could Change South Africa’s Grocery Game

SPAR has spent decades being the most familiar corner grocery name in South Africa. You see the red logo in small towns, suburbs, holiday hubs and city centres. But familiarity, it turns out, has also been one of the retailer’s biggest challenges.

Now, SPAR is making a bold move to shake up how South Africans experience its stores, with plans to roll out up to 100 gourmet-format outlets aimed squarely at the premium grocery market. The goal is clear: stop losing high-end shoppers to Checkers, Woolworths and Pick n Pay, and finally bring consistency to what the SPAR name stands for.

Why SPAR Is Rethinking Its Stores

Speaking openly about the issue, SPAR CEO Angelo Swartz admitted that one of the group’s longstanding problems has been inconsistency. For years, the same SPAR signage could be found on stores offering vastly different standards, layouts and product quality. As a result, customers never quite knew what to expect when walking through the door.

In a market where shoppers are becoming more selective and more demanding, that uncertainty has become costly. Retailers like Checkers and Woolworths have built strong identities at the premium end, offering curated ranges, convenience-driven meals and a polished in-store experience. SPAR, by contrast, struggled to communicate who each store was really for.

The Gourmet concept is designed to fix that.

Rather than trying to glamorise every outlet, SPAR wants clearer differentiation. The idea is to signal, upfront, that certain stores are built for higher-income areas and shoppers who expect a more refined grocery experience, while still protecting its price-focused core customers elsewhere.

Inside The SPAR Gourmet Concept

The first real glimpse of this future is already open. SPAR Gourmet launched at Zimbali Oasis in KwaZulu-Natal, an upmarket leisure development where the typical neighbourhood SPAR would have felt out of place.

This store leans heavily into premium touches. Think specialised butchery cuts, a broader wine selection, and a strong focus on ready-made meals for time-poor shoppers. The layout and range are designed around affluent lifestyles, not mass appeal.

Importantly, SPAR is not positioning this as a universal upgrade. The Gourmet format exists to match local expectations, not to force every SPAR store into the same mould.

In cities like Cape Town, where some SPAR stores have already quietly evolved into premium destinations, the concept simply formalises what shoppers were already experiencing. In Johannesburg, where competition at the top end is fierce, it creates a clearer alternative to the dominant supermarket chains.

When And Where New Stores Are Coming

SPAR plans to open three to four Gourmet stores in 2026, with Cape Town and Johannesburg first in line. Over the medium term, between 70 and 100 Gourmet outlets are planned nationally, using a mix of store conversions and brand-new developments.

Swartz described the rollout as a way of creating strategic coverage in areas where shoppers are increasingly choosing curated, convenience-led grocery experiences over traditional bulk shopping.

In plain terms, it is about stopping customers from drifting to rivals when their tastes and spending power evolve.

A Bigger Reset For SPAR

This retail shake-up comes at a critical moment for the group. SPAR recently reported a profit of R1.1 billion from its continuing operations, but that headline number masks serious challenges elsewhere. Its discontinued international businesses in Switzerland and England recorded losses of R6.1 billion, putting the spotlight firmly back on Southern Africa to carry the group.

Locally, SPAR has shown signs of stabilisation. Improved wholesale execution, better support for retailers, and lower fuel-related logistics costs helped operations recover in the second half of the financial year. Southern African merchandise revenue grew 2.9% in the latter half of FY2025, pushing full-year growth to 2.3%.

Grocery and liquor sales rose 1.9% year-on-year, while the Build it division posted 2.4% growth. It is steady progress, but in a tough consumer environment, steady is not enough.

How Shoppers Are Reacting

Online reaction to SPAR’s Gourmet push has been mixed but curious. Some shoppers welcome the idea of a premium SPAR that can rival Checkers Sixty60-era convenience and Woolworths-style quality. Others are sceptical, pointing out that SPAR’s reputation still varies widely depending on location.

That scepticism may be exactly why the retailer is moving now. By clearly labelling and designing stores for specific markets, SPAR is betting it can rebuild trust and win back customers who have already traded up.

More Than Just Groceries

The Gourmet rollout is part of a wider diversification strategy. SPAR has also entered the pet retail space with its Pet Storey concept, launched in September. By the end of November, all 12 Pet Masters stores had been converted to the new format, with early signs pointing to further expansion.

For Swartz, this reflects changing consumer behaviour. Categories once dominated by small independents are growing fast, and SPAR wants to be present wherever everyday spending is shifting.

The Bigger Picture

SPAR’s Gourmet gamble is not just about prettier shelves or better wine. It is about identity, clarity and survival in a grocery market where expectations have changed permanently.

If the rollout succeeds, South Africans may soon stop asking, “What kind of SPAR is this?” and start seeing the brand as a retailer that finally understands the full spectrum of its customers.

{Source:Business Tech}

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