South African Spar Group announces plans to sell its Swiss subsidiary, comprising more than 360 stores and 1,600 employees, as negotiations with potential Swiss buyers begin.
"We don't have a deal yet, but the best solution would be a Swiss owner with local business interests. This is also the focus of our negotiations"
In a significant development in Switzerland's retail landscape, the South African Spar Group has announced its intention to divest its Swiss subsidiary. This major move puts over 360 stores across Switzerland into play, marking one of the most substantial retail transitions in recent Swiss history. The announcement comes as part of a strategic review that revealed unsatisfactory performance of the Swiss operations.
Spar Switzerland, operating as Schweizer Spar Handels AG, has established a significant presence in the Swiss retail market since its acquisition by the South African Spar Group in 2016. The company operates through multiple retail formats including Spar, Eurospar, Spar Express, Maxi, and Top CC brands. In a recent expansion move, the company acquired 14 shops from the Schnellmann Group in April, demonstrating its continued market activity despite the pending sale.
The sale process is reportedly at an advanced stage, with negotiations focusing on potential Swiss buyers who have local business interests. Gary Alberts, who assumed the role of CEO at the beginning of the year, has emphasized the preference for a Swiss owner. Notably, major retail groups Migros and Coop have been confirmed as not being among the interested parties. The company aims to maintain the Spar brand presence in Switzerland post-sale.
The sale affects approximately 1,600 employees across the organization. Management has emphasized that ensuring continuity for employees, suppliers, and customers is a key priority in the transition. The company has stated its commitment to maintaining operational stability throughout the sale process, with the new ownership expected to support the existing management's growth strategy.
The future of Spar Switzerland hangs in the balance as negotiations continue. While the company has faced declining sales and profits in recent years, with growth only during the pandemic period, the extensive network of stores represents a significant opportunity for the right buyer. The focus on finding a Swiss owner with local business interests suggests a potential shift toward more localized management and strategy, which could better address the specific needs of the Swiss market.