Spar says it is repositioning its Tops liquor chain and investing in brand differentiation as competition intensifies and rival retailers expand their presence in the fast-growing liquor market.
This comes as the wholesaler seeks to maintain its position in a liquor market that has expanded rapidly in recent years.
The group recently launched its “Turn Up Epic” campaign to strengthen the Tops brand, improve store experience, and drive customer growth, as rivals including Shoprite, Pick n Pay and Boxer increase their liquor store footprints.
Spar national liquor executive Thami Silwana told Business Day that the campaign forms part of a broader brand strategy aimed at reinforcing Tops’ identity and relevance in a highly competitive market.
Data from Trade Intelligence shows South Africa’s off-trade liquor market, which includes grocery liquor stores and wholesalers, surpassed R100bn in sales in 2024. The number of stand-alone liquor outlets operated by listed grocery retailers increased 31% over five years, nearly twice the pace of grocery store expansion.
According to the report, Shoprite has overtaken Tops as the retailer with the largest number of liquor outlets, highlighting intensifying competition in the sector.
Yet, Tops remains a major player, with Spar reporting continued growth in sales and customer traffic after the campaign’s launch in October.
“This investment has translated into measurable commercial outcomes. Year-to-date, Tops has delivered positive growth in sales,” said Silwana.
Silwana said early indicators suggest the campaign is strengthening customer engagement and store performance.
“While it is still early to assess full-cycle return on investment, the initial indicators suggest that the campaign is driving improved customer engagement, stronger store execution and sustained momentum beyond peak trading months,” he said.
Spar said it opened a net total of 26 new Tops stores in the past financial year, but future expansion will be more selective as the market becomes increasingly saturated.
“While we remain open to selective, retailer-led new store opportunities, given the maturity and increasing saturation of the liquor retail market, our primary focus is on organic growth within our existing footprint,” Silwana said.
This includes increasing transaction volumes, improving basket size and strengthening store execution.
Liquor accounts for about 13% of Spar Southern Africa’s total sales from September 2025, according to Silwana, supporting overall earnings and wholesale volumes.
“Tops contributes positively to earnings quality and cash generation at retailer level and, by extension, supports wholesale volumes and group performance,” he said.
However, grocery remains Spar’s primary earnings driver.
“Grocery remains the core earnings driver of the business due to its scale, frequency and basket size contribution,” he said.
Tops contributes positively to earnings quality and cash generation at retailer level and, by extension, supports wholesale volumes and group performance.
— Thami Silwana, Spar national liquor executive
Spar’s latest annual report said liquor sales performed well in the 2025 financial year boosted by strong demand, with transaction volumes rising and basket sizes increasing modestly.
Silwana said the campaign also aims to reinforce the Tops brand in a market in which it has become widely recognised but faces increasing competition.
He said customer traffic and store performance have improved since the campaign’s launch.
“What we’ve seen since we’ve launched the campaign is … more feet come to our stores … Tops is the best-performing liquor group.”
Trade Intelligence said the liquor category remains heavily dependent on physical stores, with more than 90% of shoppers still buying alcohol in-store. This has driven continued expansion by grocery retailers seeking to capture growing demand.
Meanwhile, the broader alcohol industry is undergoing structural change. Market data has recently shown that consolidation among global producers, including Heineken’s acquisition of Distell, is occurring while economic pressure is pushing some consumers towards lower-priced brands, Business Day previously reported.
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