SPAR sales under pressure, but it's chipping away at debt

Retailer SPAR has reduced its hefty debt pile, but it's feeling the pinch of tough economic conditions across most of its geographies, including falling volumes in SA.

Group turnover increased by 8.8% for the 24 weeks ended 15 March, the group said in a pre-close update. This is lower than the 9.3% growth it reported for the 20 weeks to February.

Pressure has been felt in SA, the UK, Switzerland as well as Poland. Total wholesale sales growth of 5.7% in southern Africa was hit by weaker-than-expected grocery sales. The combined core grocery and liquor turnover growth of 6% in this part of the business, which represents about two-thirds of it revenue, was below price inflation of 7.2%.