CHRIS GILMOUR: Spar’s in a seriously sticky mess
Retailer has too many moving parts and is thus unlikely to be able to come up with a quick fix
Food & drug retailers, including the likes of Spar, are supposed to be among the most defensive and resilient shares on any stock exchange. The reason is simple: they sell non-discretionary items that people cannot do without. But recent results and updates from this sector have shown that almost all of them are buckling under the strain of a poor ambient economy, high interest rates and the impact of sustained load-shedding.
Spar recently posted extremely weak interim results, the main casualty being the dividend, which was passed completely. The misery was compounded by its Polish operation, which continues to disappoint, and profitability locally is well down...
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