Shoprite on Monday (4 November), reported a 7.3% increase in turnover for the three months to September 2019.
The Group’s core business, Supermarkets RSA grew sales by 10.3% during the quarter, continuing its market share gains, it said. “Whilst all three of our supermarket brands traded well, our hard discounter format Usave led the growth. Internal selling price inflation measured 3.0% over the period,” the group said in a trading update.
It noted that its ‘Supermarkets Non-RSA’ segment has seen no change to the difficult operating environment articulated in recent results. “Currency devaluations have continued and our Nigerian business had a particularly challenging quarter marred by Xenophobic attacks,” Shoprite said.
“Overall our Supermarkets Non-RSA segment’s sales declined 4.9%. Management is assessing the performance of the Supermarkets Non-RSA segment, with specific reference to the Group’s return on capital invested in Africa.”
The group said it’s other operating segments, which include the OK Franchise, Computicket, MediRite pharmacies and Checkers Food Services, reported a 6.4% increase in sales. The OK Franchise division grew sales by 8.6%.
Shoprite said it opened 15 new stores during the quarter across the following three supermarket trading brands: Usave (8), Shoprite (4) and Checkers (3).
“Our furniture store base reduced by a net 10 stores. Liquorshop added a net 10 stores to reach a milestone 500 stores. Our OK Franchise division grew its base by a net 10 stores in the quarter,” Shoprite said.
Not included in these new store openings is the re-launch of the existing Johannesburg based Sandton City Checkers Hyper in late September. “This store is a flagship for the Checkers FreshX format and the store re-opening is surpassing our expectations,” it said.
In mid-October, Checkers launched a new rewards programme, called Xtra Savings.
The programme is the group’s answer to Pick n Pay’s SmartShopper and Woolworths’ WRewards, but aims to reverse the typical reward trend.
While most rewards schemes are based on earning points and earning loyalty rewards, or being placed into different tiers based on spending habits, Xtra Savings opts for delivering “instant cash savings” on items purchased, Checkers said.
“There are no points. No tiers. No levels. Just instant cash savings on your groceries and drinks,” it said.
“To date, the Xtra Savings Rewards Programme take up has exceeded expectations with more than a million members signing up after just one week,” Shoprite said on Monday.
“It marries advanced data processing with marketing automation into a powerful personalisation engine,” it said. “This launch aligns with the Group’s focus to ensure our customers save more every day, paving the way for smarter decision-making and precision retailing. It also unlocks alternate revenue streams from existing and new customers.”