Significant progress has been made in stabilising the ERP implementation at the KwaZulu-Natal distribution centre, says the retailer.
Spar Group encountered multiple obstacles during the SAP rollout, particularly at its KZN distribution centre.
According to the retailer, the operational impact amounted to an estimated R720 million in loss of profit for this region. The transition resulted in various go-live and integration issues, significantly impacting distribution operations in the region. It revealed that three directors, who have since left the company, ignored the whistleblower’s concerns about the botched rollout.
“We have also begun to plan our rollout for the remaining distribution centres, which should gain meaningful progress in the 2025 financial year. We continue to focus on returning the SA business to a 3% operating profit margin by end of the 2026 financial year and are in the process of reviewing our target operating model with a view to maximising value to Spar shareholders.
It saw combined core grocery and liquor sales growth of 3.6%, against internally measured price inflation of 5.8%, with liquor sales showing an exceptional performance of 10.5%.
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