Spar COO Invests R1 Million in Shares as Retailer Exited Europe

Megan Pydigadu Spar shares. (CFO SA/internet)

by Kelebogile Matlou

Megan Pydigadu, Spar’s Chief Operating Officer, purchased around R1 million worth of stock in two installments this year as the grocery chain accelerated its withdrawal from unstable European markets. Pydigadu, who joined the firm from IT group EOH in November 2023, made the purchases as Spar in spite of a difficult first half, reported good progress on its five-point recovery strategy.

Her investment indicated her belief in the retailer’s transition to its core South African and Irish markets. The group reached three important milestones in this process, the sale of its loss-making Polish operations in January, the completion of its debt restructuring in March, and the sale of its Swiss operations in September. 

Spar has also announced plans to sell its UK-based business, Appleby Westward Group (AWG), as part of a larger assessment of capital allocation objectives.  According to the board, abandoning these European assets was consistent with Spar’s strategy concentration on Southern Africa (where it aims for a 3% operating margin) and Ireland.

In the 26 weeks leading up to March, Spar recorded R66.1 billion in group sales from ongoing operations, with an operating profit of R1.5 billion, a 1.6% increase. This outcome occurred in spite of Mozambique’s post-election instability and declining food inflation.

The store’s strategy for digital transformation also advanced. The number of orders placed through its SPAR2U delivery app increased by 174%, and its partnership with Uber Eats expanded to 130 sites around the area. Despite store closures in Gauteng and challenging trading conditions, particularly among middle- and upper-class consumers, retail sales in Southern Africa climbed 1.9% while wholesale turnover increased 1.7%.