Spar Switzerland is about to sell: Who takes over the 360 ​​branches?

Spar Switzerland is about to sell: Who takes over the 360 ​​branches?

Schweiz - The South African Spar Group Plant the sale of its Swiss subsidiary, Spar Handels AG. Talks are currently underway with potential buyers, although it is still unclear who will take over over 360 branches. In this transition phase, the focus is on continuing continuity for employees, suppliers and customers.

Spar Switzerland runs its shops under various brands, including Spar, Eurospar, Spar Express, Maxi and Top CC. The takeover of 14 branches of the Schnellmann Group in April 2023 shows the company's endeavor to expand its market presence. At the end of September 2024, Spar Switzerland had around 1,600 employees, a factor that, according to CEO Gary Alberts, is important when looking for a new owner. Alberts emphasizes that a Swiss owner with local business interests is considered ideal.

declining sales and profit

The takeover negotiations are already in an advanced stage, but could still take several weeks. SPAR Switzerland's sales and profits are declining in the financial year until the end of September 2024. Sales fell by 6 % to CHF 745 million, while profit fell by CHF 5.6 million. In addition, there was a further decline in sales by 9 %in the new financial year.

A challenge for the company is the current procedure of the competitive commission (WEKO), the possible inadmissible agreements from details and wholesalers. SPAR denies the allegations, but faces possible punishments of up to CHF 60 million. The difficulties are interpreted as a consequence of a failed expansion strategy and failures of previous managers. Mike Bosman, the new Board of Directors, already announced legal steps against former top forces.

market position and competition

In Switzerland, retail is of great importance and achieved sales of around CHF 103 billion in Swiss francs in 2022. Inpatient trade is the main turnover driver and is enjoying a positive development. The leading providers in inpatient trade are Migros and Coop, which in 2022 turned out sales of 12.32 billion and CHF 11.57 billion. These two companies are also not among the interested parties for the purchase of Spar Switzerland.

The strategy of Spar to maintain the brand in Switzerland shows that despite the setbacks there is hope of returning to stable business figures. The more than 33,200 retail companies in Switzerland stand for a lively competition in which SPAR wants to assert itself, while online trading still has potential with a share of around 12 %.