Spar has announced the successful resolution of its SAP system issues at its KwaZulu-Natal distribution center, a major step in its operational recovery. The system failures, which began in February 2023, caused significant supply chain problems and an estimated R2 billion in lost sales. Now, Spar reports improved pricing visibility and is preparing for the next phase of its SAP rollout.
This resolution is crucial for Spar as it focuses on strengthening its balance sheet. Margin recovery is being supported by improvements at the distribution center, the sale of underperforming stores, and increased operational efficiency. Spar is also actively managing its debt by selling non-core properties and has finalized the sale of its Polish operations.
Despite a challenging consumer environment, Spar has seen positive results in Southern Africa, with retail sales growing by 3.4%. Its online platform, SPAR2U, experienced a significant increase in order volumes, and its Build It and pharmaceutical divisions also reported growth.
Internationally, Spar’s European operations continue to face challenges, but the disposal of Spar Poland is a key milestone in its European strategic review. With the SAP issues resolved, Spar is focused on improving its financial stability and achieving long-term growth.