JOHANNESBURG, June 4 (Reuters) - South African

supermarket retailer SPAR Group reported on Wednesday a

marginal decline in half-year earnings, as group revenue from

continuing operations remained steady at 66.1 billion rand

($3.70 billion).

The retailer said headline earnings per share from

continuing operations fell by 0.4% to 450.1 cents in the 26

weeks ended March 28, down from 451.9 cents a year earlier.

Group operating profit increased by 1.6% to 1.5 billion

rand, supported by improved cost discipline, with its operating

margin stable at 2.2%.

In Southern Africa, wholesale turnover increased by 1.7% to

49.9 billion rand, reflecting the ongoing pressure on consumer

spending, compounded by lower food inflation, Mozambique

post-election unrest, the timing of Easter falling in the second

half of the current financial year and store closures in

Gauteng, SPAR said.

Combined grocery and liquor wholesale revenue rose by

1.1%, while retail revenue increased by 1.9%, with like-for-like

sales up 1.6%.

Growth was underpinned by strong momentum in the

lower-income customer segment, while the middle and upper

segments' performance lagged the market, the retailer said.

Ireland reported local currency revenue fell by 0.6% in

an environment where inflation is challenging volumes in the

retail convenience sector.

($1 = 17.8637 rand)