Wholesaler Spar has rejected a call by its retailer base to remove chair Mike Bosman, despite a formal petition citing a “serious and collective loss of confidence” in his leadership.
The petition, submitted on May 8 by elected representatives of the Spar National Council following a meeting with group executives led by CEO Reeza Isaacs, calls on the board to request Bosman’s resignation “with immediate effect”.
Spar operates more than 13,800 branded stores across 48 countries on four continents.
The retailers said the call was prompted by rising concerns about the group’s performance and growing tension between the board and the independent store network. “Retailers are the foundation of the Spar voluntary trading model. We trade under the Spar name every day; we carry the brand in our communities and we experience directly the consequences of decisions taken at group level. In our considered view, the current crisis of confidence has reached a point where Mr Bosman’s continued tenure as chair has become untenable.”
The retailers say Bosman has come to be associated with a period of operational difficulties and reputational damage at the group.
“His continued presence as chair now stands as an obstacle to renewal, confidence-building and the restoration of constructive relations across the Spar system,” retailers said. “We therefore respectfully but firmly call on the board to request Mr Bosman’s resignation as chair of The Spar Group Ltd with immediate effect.”
They added that the request is not personal but is aimed at restoring trust and stability within the voluntary trading model that underpins Spar’s operations.
The retailer revolt comes as Spar’s market value has come under sustained pressure. The group has lost more than 42% (R9bn) of its value in the past six months, according to Iress data. This has taken its market capitalisation to about R11.6bn, trailing the struggling Pick n Pay at R15bn and fast-growing discounter Boxer, which is now valued at about R39bn.
In response, Spar told Business Day that it has received and considered the petition, including at a specially convened meeting, but said it will continue to back Bosman. “The board wishes to place on record its full confidence in Mike Bosman as chair of the board,” it said.
The group said Bosman provided leadership during a difficult period, including serving as acting CEO in 2023, and it emphasised the need for stability as the group works through ongoing challenges.
Spar acknowledged the importance of its retailer base, describing it as central to its business model, and said it is taking steps to address concerns raised in the petition.
These include the formation of a board subcommittee to engage with retailers and deal with issues affecting the relationship between the group and its independent operators.
The company said it is also working to resolve broader operational and structural pressures, including governance matters and past system disruptions, while continuing efforts to stabilise the business and execute its strategy.
“The Spar board respects the passion that Spar retailers have for the business and for the future of the Spar system. It is precisely that shared commitment to the long-term health of the Spar voluntary trading model that makes constructive engagement between the board and the retailer network so important,” it said.
Retailers, however, argue that confidence has been eroded and that leadership change is necessary to rebuild trust and protect the brand.
The standoff highlights growing tensions within Spar’s voluntary trading system, where independent store owners operate under a shared brand but rely on the group for support, strategy and supply.
The board said it remains focused on supporting retailers and strengthening engagement structures, while maintaining that its decisions are guided by the long-term interests of the business and its stakeholders.
“The primary focus of the board and management remains acting in the best interests of all stakeholders — supporting retailers, serving customers and communities, and protecting the strength and reputation of Spar’s voluntary trading model.”
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