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SA’s Spar grocery chain plans to differentiate its brand offerings
By our African Marketing Confederation News Team | 2025
Like its main competitors, Spar will split its retail brands into higher-income premium outlets and lower-income discount stores.
South Africa’s Spar supermarket chain plans to follow its key competitors by differentiating its brands into premium and discount outlets serving different segments of the market.
Spar intends opening 30-40 high-end grocery stores to service wealthier consumers, with the first of these outlets scheduled to open in the fourth quarter of this year. According to local media reports, these will be branded as Gourmet stores.
To service more price-sensitive lower-income shoppers, Spar intends to revamp its SaveMor brand.
Photo by Pixabay via Pexels
Key supermarket retail rivals Shoprite and Pick n Pay already have a similar strategy in play. Shoprite has the Checkers brand for higher-income customers and the Usave brand for lower-income shoppers. Pick n Pay uses Pick n Pay branding for its higher-income clientele and the Boxer brand name more cost-conscious shoppers.
The other big-name supermarket competitor in South Africa is Woolworths. It targets only more affluent consumers.
A key focus on premium foods and indulgent products
“Key focus areas include premium food solutions, coffee, bakery, and indulgent products, with a curated assortment tailored to meet the needs of a more affluent customer base,” Spar Southern Africa CEO, Max Oliva, is quoted as saying by Reuters news agency.
“The strategy includes converting high-end niche Spar stores while also opening new locations in strategic sites. We anticipate around 30 to 40 Gourmet stores in the future, though no fixed timeline has been set.”
Spar’s plan to more clearly differentiate its offering to consumers has been an open secret for some time, given that the strategy was foreshadowed in South African media reports published in 2024.
Spar is a Dutch-based group, but the South African Spar franchise-holder also owns several other country licences. It also operates Spar-branded liquor stores in South Africa and the Build It building-supplies chain.
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