SPAR, the convenience store chain headquartered in South Africa, has said that it plans to sell its struggling business in Poland.

The company, which reported a 10.6 per cent rise in turnover for the first 47 weeks of its financial year, said a continued commitment to the Polish market would not be beneficial despite narrowing losses in the country.

SPAR, which also operates in the UK and Switzerland, acquired a controlling stake in Poland’s Piotr i Pawel group in 2019 and has been working to turn the business around since by offering better rebates and shifting the business away from loss-making stores to new areas like fuel forecourts.

At the time of its last financial report in June, SPAR said growth in retailer loyalty and a reduction in operating losses in Poland were encouraging signs. Despite this, the company has decided to exit the country less than six months later.

In a statement, the company said: "Having evaluated and considered all options, the board believes that it is in the best interests of the group and shareholders to engage in a process to dispose of its interests in Poland.”

SPAR Poland increased sales by five per cent in the 47 weeks to 25 August, but the unit contributes less than two per cent to group turnover.

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