JOHANNESBURG - Spar is pressing the reset button amid plunging profits.
Its Headline Earnings Per Share fell by 55 percent for the half-year that ended in March.
Spar had warned the market to expect bad news in its May trading update and its shares plunged by 15 percent.
The share price initially fell earlier but then started rising.
SPAR says its woes are not linked to the market or competition, but its own internal issues.
READ | Spar flags sharp earnings drop amid pressured trading
Management has cited under-performance in KwaZulu-Natal and a Black Friday campaign that backfired.
Overall, SPAR's operating margins have fallen due to rising costs.
It has set a target to lift profits back to 3 percent by 2028.
Spar's CEO Reeza Isaac maintains that Spar still remains a reputable company.
This as he gives reasons why customers who have left should return.
"It is a strong brand and a strong player in food retail in Southern Africa. There are advantages of being in the system. It's not a franchise model but rather an independent model meaning that you have the flexibility of modifying your offer to the community in a manner toy see fit," he said.