It has been reported that Spar Group Limited has confirmed the resignation of Group Chief Executive Officer Angelo Swartz, who will step down from his role and leave the business on 28 February 2026, after almost two decades with the company, including almost 16 months as CEO.
Swartz's departure comes during a challenging period for Spar, as the JSE-listed retailer deals with an operational reset, margin pressure, litigation linked to a troubled software rollout and the divestment of non-core international businesses.
Leadership change during strategic reset
Swartz, who served for nearly two decades at Spar in a number of roles including head of the KwaZulu-Natal distribution division before becoming CEO in October 2023, cited personal reasons for his decision.
Addressing investors recently, he explained that the continued intensity of the company's reset efforts, particularly over the past five years, had come at a “significant personal cost”, prompting his choice to prioritize family after a demanding chapter of leadership.
Chairman Mike Boseman thanked Swartz for his leadership and long-term service, noting his contributions to stabilizing operations and balance sheet adjustments during a complex period.
Riza Isak to take over as CEO
In response to the leadership change, Spar's board has appointed the company's Chief Financial Officer Riza Isak as Group CEO with effect from 1 March 2026.
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Isaac joined Spar in 2025 and previously held senior roles including Finance Director at Woolworths Holdings.
The group said Isaac has played a key role in supporting initiatives to strengthen financial governance, strengthen capital discipline and improve margins and deleveraging. His leadership is expected to guide Spar through the next phase of disciplined execution and operational recovery.
Concurrent with this change, Megan Pydigadu, currently Group COO, will take up the role of Group CFO from 1 March, ensuring continuity of financial oversight as the business pursues strategic priorities.
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Operational Pressures and Industry Challenges
Swartz's tenure as CEO took place against a backdrop of ongoing change and external pressures. Spar saw the sale of its Swiss and Polish businesses as part of efforts to streamline operations and reduce debt. The group is also in the process of divesting its UK operations, reflecting a strategic refocus on key Southern African retail markets.
The retailer's performance metrics at the start of the 2026 fiscal year have been mixed. While the wholesale business from continuing operations recorded modest growth of approximately 2.1% year-on-year in the 18 weeks to January 30, gross profit margins declined in South Africa due to competitive pricing, low food inflation and targeted promotional activity.
Adding to the operational complexity, Spar has faced legal challenges linked to a failed SAP enterprise resource planning rollout at its KwaZulu-Natal distribution centre, which has generated litigation from a franchisee alleging supply disruption and financial losses.
Amid these pressures, Spar has revised its SAP implementation strategy to separate finance and delivery systems, with the goal of reducing execution risk and stabilizing core operations.
Market reaction and outlook
It is reported that the announcement of Swartz's resignation led to a significant decline in Spar's share price, reflecting investor concerns about leadership continuity and execution risk as the business faces reset and margin recovery challenges.
Despite the turmoil, company leadership has stressed that the current transformation aligns well with strategic priorities and that the foundation established under Swartz's tenure provides a platform for focused execution under the new CEO.
The group is also planning organizational adjustments, including the creation of a dedicated managing director role for the key grocery and liquor segment to sharpen operational accountability.
A tried-and-true retailer is navigating change
Swartz's resignation marks a significant leadership change at one of South Africa's largest retail groups. With Spar's transition to new leadership under Isaac, the focus will be on stabilizing performance, improving margins and executing structural initiatives that will strengthen competition in the region's challenging retail landscape.
The coming months will be crucial as Spar looks to translate the strategic reset into sustainable growth.
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