Spar says its not looking to tap shareholders, even as SA volumes fall

Retailer Spar said on Wednesday it is not looking to tap shareholders as it battles falling volumes in some markets and a hefty debt pile. The group said it is considering various debt structuring options and has the support of its financiers.

Analysts said the market appeared to take heart from this, as well as news in the JSE-listed retailer's latest trading update that it is getting to grips with problems in its new IT system. It also reiterated its plans to exit its problematic Poland operations, and despite pressure in its core grocery market, its shares were up over 1% on Wednesday afternoon. They have still fallen by a quarter in the past year.

In a trading update for the 20 weeks to 16 February, Spar said a weaker rand helped flatter its offshore operations, but in Southern Africa it saw combined core grocery and liquor turnover growth of about 6% against internally measured price inflation of 7.5%.