The SPAR Group Ltd. (JSE:SPP) may chop Swiss operation next. Share price up 2.9% on willingness to quit Poland and hint on Switzerland Retail Correspondent With wholesaler Spar planning to leave Poland as soon as it can sell the business, it looks as though Switzerland will be next. The wholesale business in Switzerland accounts for less than 3% of that country's retail market, it posts low returns and it has been struggling since the pandemic ended and borders opened.

Locals do weekly or monthly shops over the border in Austria and Germany, where groceries can be up to 60% cheaper. Spar group chair Mike Bosman said: "I think once we've moved past Poland, we're going to have to look at what we can do in Switzerland because the idea of operating below the weighted average cost of capital makes no sense to any of us". A source told Business Day that many of the Spar convenience stores in Switzerland are poorly situated.

As in Poland, Spar may lack the scale needed to be profitable in Switzerland. A decision to leave Poland and Switzerland will allow it to focus on its successful business in Ireland. It will also be able to focus on SA where it faces huge competition from Checkers' Sixty60 delivery service.