SPAR Group has announced its exit from the United Kingdom market, confirming the sale of its South West England operations and disposal of dozens of stores in a strategic retreat from one of its international retail bases.
The company said it will sell its South West England business to A.F. Blakemore & Son in a transaction valued at about £13 million, according to Reuters reporting. The deal includes the transfer of a regional SPAR licence and 71 stores, alongside additional disposals covering 63 outlets across the broader UK portfolio.
The decision marks a significant shift for the South African retailer, which has operated in the UK convenience and supermarket sector for years through franchised and licensed store networks. The exit signals a broader reassessment of international operations as competition intensifies in the UK grocery market.
SPAR Group said the move is part of its strategy to streamline operations and focus on more profitable or strategically aligned markets. While the UK has historically offered scale and brand visibility, it has also become increasingly challenging due to rising operating costs, inflationary pressures, and fierce competition from established supermarket chains.
The South West England division being sold to A.F. Blakemore & Son includes a network of convenience stores operating under the SPAR brand. A.F. Blakemore is already a major SPAR wholesaler and retailer in the UK, making it a natural buyer for the assets being divested.
Industry analysts say the exit reflects a wider trend of international retailers reassessing exposure to the UK market, where margins have been squeezed by higher labour costs, supply chain disruptions, and changing consumer behaviour.
For SPAR, the decision also highlights a shift in focus back toward core African and selected international markets where the group believes it can achieve stronger returns and operational efficiency.
The UK grocery sector has been undergoing consolidation in recent years, with smaller chains either merging with larger operators or exiting regional markets entirely. The sale of SPAR’s South West England operations adds to that trend, as regional players struggle to compete with national supermarket giants and discount retailers.
Despite the exit, the SPAR brand remains strong globally, operating across multiple continents through a network of independently owned and licensed retailers. The UK restructuring, however, suggests a more cautious approach to expansion in mature and highly competitive Western markets.
Financial analysts note that the £13 million deal, while modest compared to major retail transactions, is strategically important for SPAR’s balance sheet optimisation and operational refocusing.
The transaction is expected to be completed after regulatory approvals and standard closing conditions. Once finalised, it will mark the end of SPAR’s direct operational footprint in South West England and a broader withdrawal from the UK retail landscape.
