By Siyanda Mthethwa and Nqobile Dludla

JOHANNESBURG, March 13 (Reuters) - South Africa's SPAR

Group is planning a chain of about 30 to 40 high-end

grocery stores, with the first set to open in the fourth quarter

of this year, an executive said on Thursday, as the retailer

targets affluent shoppers.

South African grocery retailers are increasingly tailoring

stores to wealthy or low-income customers in a market that is

becoming more polarised.

"The strategy includes converting high-end niche SPAR stores

while also opening new locations in strategic sites. We

anticipate around 30 to 40 Gourmet stores in the future, though

no fixed timeline has been set," Max Oliva, SPAR Southern Africa

CEO, told Reuters.

The South African retailer owns several SPAR country

licences of the Dutch SPAR group.

Presenting on Wednesday at the company's capital markets

day, Oliva told investors that the new SPAR Gourmet format would

target customers in high-end residential and urban areas.

"Key focus areas include premium food solutions, coffee,

bakery, and indulgent products, with a curated assortment

tailored to meet the needs of a more affluent customer base," he

said.

SPAR Gourmet and discount chain SaveMor are part of the

group's segmentation strategy, similar to what rivals Pick n Pay

and Shoprite have been doing in recent years.

To strengthen its position in the competitive discount

grocery sector, SPAR will also be revamping the SaveMor chain.

South Africa's higher-end grocery market is dominated by

Woolworths, followed by Shoprite's Checkers chain. In

the discount space, Shoprite has Usave and Pick n Pay has Boxer

.