SPAR to close thirteen underperforming stores in Johannesburg

SOUTH AFRICA – SPAR, an international group of independently owned and operated retailers and wholesalers who work together, has announced plans to lose 13 grocery stores in its South Rand Region, Johannesburg.

The decision follows a 1.6% drop in turnover, with the company citing a challenging trading environment, noting lower sales due to constrained consumer spending in all regions.

It also highlighted that one of the key factors behind its downfall was a failed SAP enterprise resource planning (ERP) system rollout at its KwaZulu-Natal distribution center, which caused severe supply chain disruptions.

This led many independent SPAR retailers to seek alternative suppliers, weakening their loyalty to the brand.

SPAR CEO Angelo Swartz said that the group’s Southern Africa margin recovery is being bolstered by the improved performance of the KZN distribution centre, the disposal of non-performing corporate stores, and enhanced operational efficiencies.

Retail sales grew by 3.4% across the group’s 2,029 supermarket and liquor stores, with same-store sales growth of 3.0%, slightly ahead of national inflation.

“Growth was particularly robust in our lower-income grocery stores with subdued growth in our middle- and higher-end stores,” he said.

Operating losses from corporate grocery and liquor stores were reduced due to improved performance and the closure of non-performing stores.

SPAR’s on-demand shopping platform, SPAR2U, delivered solid growth in order volumes of 285% compared to the prior comparative period.

Nigeria’s first live shopping platform

In contrast to underperforming stores in South Africa, Nigerian online sellers may soon experience a significant shift in e-commerce as Auqli, the country’s first live shopping platform, prepares for its official launch in April 2025.

Designed to address common challenges such as abandoned carts, unpaid orders, and algorithm-driven visibility issues on social media, Auqli promises to offer a real-time, interactive shopping experience that streamlines transactions and enhances buyer- seller engagement.

Unlike conventional online selling methods, Auqli allows vendors to host live video sessions, interact directly with customers, and close sales instantly within the same session.

 The platform also integrates buyer verification, cash-on-delivery payment options, and in-app logistics, ensuring a seamless and fraud-resistant shopping experience.

Co-Founder Paul Jatau highlighted the platform’s mission to empower businesses beyond the constraints of social media.

“Many sellers struggle with visibility and unreliable transactions,” he said. “With Auqli, they can engage customers in real time and secure instant sales without algorithm interference.”

CEO Odera Joseph Echendu further emphasised the need for a trust-driven marketplace where vendors can focus on business growth rather than chasing payments.

“We are eliminating the frustration of failed transactions and ensuring that every committed purchase is finalised instantly,” he concluded.

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