SPAR: From R149.87 to R41.42 – Is the Ship Sinking?

If one takes the trendline of Spar Shares from May 2024 (R149.87) to today 18 August 2026 (R41.42) one can clearly see that the trend is in a steady sharp decline.

The SPAR Group Limited (trading under the ticker SPP on the Johannesburg Stock Exchange) reached its all-time high share price on 25 February 2018, hitting R227.00 per share.

As a very regular customer (for historical reasons – no longer now apparent) I have watched Spar struggle to stay relevant.

My reasons for shopping at my local Spar were basically these:

1. My Ex (as a Spar DC Employee) received a generous cash pay back every month for Spar receipts proving our monthly purchases (that was the start)
2. Convenience – Acres Spar is still the closest store to us in Parsons Hill
3. Friendly – the cashiers were always friendly and long standing employees. I cannot stress ‘friendly’ enough – I avoid like the plague supermarkets (Pick ‘n Pay is a big no no) with surly staff. If I am going to get screwed then I would prefer being screwed by someone with a smile!

I now find myself with ONLY ONE compelling reason to shop at my local Spar – that of convenience. The ex (stands to reason) now longer requires my cash injection and the passing parade of cashiers who are surly and ‘just doing a job’ is becoming sad.

Now Sixty60 takes care of our daily shop and the delivery staff are, on the whole, very friendly.

Along with Spar’s failed delivery service (Checkers really set the bar with Sixty60) and the slow failure of cashiers who are friendly and on the ball we were presented yesterday with two high level resignations:

1. Mike Bosman tendered his resignation as an independent non-executive director and Chairman of the Board, with effect from 17 August 2026.
2. Dr Shirley Zinn tendered her resignation as an independent non-executive director and Deputy Chair of the Board, with effect from 17 August 2026.

In the SENS announcement Spar said; “While Mr Bosman and Dr Zinn continue to have the full support of the Board, taking into consideration the context of the period that both these directors and the Board have recently experienced, Mr Bosman and Dr Zinn have separately concluded that stepping down and resigning from the Board is the right decision for them and in the best interest of the Company.”

Bosman was appointed Chairman in December 2022, at a time of exceptional difficulty for the Group and when the share price was R120 a share. There followed a number of dips and rises culminating in an increased share price of R149.87 two years later. This was the last high before the share price crashed to R41.42 today.

The corporate speak and sudden dual resignations smacks of rats leaving a sinking ship.

Spar needs to solve a few problems:

1. The voluntary franchise model has become unwieldy
2. The SAP implementation debacle splashed egg on their faces and negatively impacted their cash reserves
3. Staff in the local stores – I get the feeling that the training of front line staff by the various DC’s has slumped or is non-existent.
4. Without an effective Sixty60 type delivery model Spar needs to be very creative in getting feet into the doors.
5. Maybe the board level people should be basing decisions on what the ordinary shopper wants!

BTW: I sold my Spar shares a long time ago (2018) in a fit of pique after the ex left – looks like she did me a favour with that action, though.