Retailer worth more than Pick n Pay and Spar opening new stores across South Africa
Boxer continues plans to open 60 stores in the current 2027 financial year despite the highly constrained consumer environment.
Boxer is a value retailer with a market cap of R33 billion. This is more than other food retailers in South Africa, including Pick n Pay (R13 billion) and Spar (R9 billion).
Notably, Boxer is majority-owned by Pick’n Pay, with much of Pick n Pay’s value tied to its stake in Boxer.
In a trading update for the 20 weeks ended 19 July 2026, Boxer has highlighted a strong store rollout plan despite the tough economic environment.
During the Period, 19 new stores were opened, consisting of 6 Superstores and 13 liquor stores.
Boxer has a large FY27 store opening pipeline, and its management remains confident that the group will meet its previously communicated store rollout target of 25 Superstores and 35 liquor stores for FY27.
The group added that momentum was slowing in the tough trading environment, with continued deflation in selling prices across the Boxer shopping basket.
Turnover for the period grew by 7.2%, with like-for-like growth of 2.2%. This marked a 10.9% slowdown in turnover growth and a 3.7% like-for-like decline in H2 FY26.
Like-for-like volume growth, measured like-for-like turnover less internal selling price inflation, was positive, sustaining a three-year trend.
Data from NielsenIQ showed that Boxer’s market share increased over the period. Internal selling price inflation for the period was -1.9%, when measured on a volume-held-constant basis
This marked a further slowdown from the 0.7% and -1.6% previously reported by the group for H1 FY26 and H2 FY26, respectively. This is markedly below the 5.0% CPI recorded for June.
The reported deflation comes amid deflation across key commodity categories, especially maize meal, rice and flour, which saw double-digit deflation during the period.
The group’s management believes it remains on track to maintain its H1 FY27 trading profit margin at the level of H1 FY26.
Management is optimistic due to both strong growth in other trading income and tight margin control.
However, the group also expects turnover growth to accelerate over the latter part of FY27 due to an anticipated uptick in selling price inflation and an improved turnover contribution from new stores.
The majority of the new FY27 store openings are scheduled for the second half of the financial year.
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