SPAR’s independent retailers petitioned the board in May to remove chairman Mike Bosman, but the board declined to do so. On Monday (17 August), Bosman and deputy chair Shirley Zinn both resigned as independent non-executive directors with immediate effect. The nominations committee is now recruiting directors against a skills matrix that specifically includes direct retail and independent retailer experience, which suggests recognition of the need for greater expertise in these areas. SPAR has been the weakest performer among the JSE-listed food retailers this week, and by a wide margin (see Figure 1).
Figure 1: SPAR share price performance vs peers (rebased to 100 as at 12 August 2026)
Source: Bloomberg, Anchor Capital
The board shake-up may represent a step in the right direction, although we see the appointment of a chairperson who commands the confidence of SPAR’s store owners as critical. Ultimately, the relationship between SPAR and its independent store owners is fundamentally symbiotic, and rebuilding trust between the two parties will be essential to restoring the business to a sustainable footing.
That said, SPAR arguably finds itself in a precarious operating position without the luxury of time. South African (SA) operating profit fell materially in 1H26, while a growing proportion of amounts owed to the Group by retailers is overdue, perhaps unsurprising given the status quo. Unusually for SA retailers, its international operations in Ireland are steady and now account for most of the Group’s operating profit. The SPAR balance sheet provides little room for further execution missteps, with SA leverage approaching its covenant limits and the dividend suspended. The well-publicised SAP software implementation challenges have not helped its cause, with the rollout still incomplete and remaining a material execution risk. We remain on the sidelines for now. However, a credible board reset, improved relations with its independent store owners and evidence of a sustainable recovery by the SA business could change our view relatively quickly.
