South Africa’s biggest retailer is getting even bigger
South Africa’s largest retailer, Shoprite, is continuing to expand its operations in the country, opening a net 53 stores in the first quarter of the financial year.
The group published a voluntary shareholder statement on Tuesday (29 October), providing an update on operations for the quarter period ending September 2024.
Group sales over the period increased by 10.4%, with the South African retail segment beating this at 11.4%.
On a net basis, the Group opened 68 stores during the first quarter. The majority of these, a net 53 stores, were opened in South Africa.
The group’s core Supermarkets RSA segment, the majority of which is represented by food retail operations Shoprite, Usave, Checkers, Checkers Hyper and LiquorShop, increased sales for the first quarter by 11.4% (prior period first quarter: 13.3%).
After measuring 3.0% for July 2024, the group’s internal selling price inflation has continued to move lower during August and September, measuring 2.6% for the period—well below inflation.
Supermarkets RSA opened 56 stores (closed three stores) during the first quarter: nine Checkers, two Shoprite, nine Usave, 20 LiquorShop, 13 Petshop Science, one UNIQ clothing by Checkers and two Checkers Outdoor.
In terms of events after the reporting date, specifically pertaining to the purchase of the remaining 50% shareholding in Pingo Delivery (Pty) Ltd, the effective date of this transaction will be during October 2024 following receipt of approval from the Competition Tribunal, the group said.
“With regard to the sale of the majority of our furniture business to Pepkor Holdings Limited the transaction process is progressing accordingly with the timeline to completion closer to our June 2025 financial year end.”
Shoprite’s performance stance in stark contrast to that of competitor Pick n Pay, which presented its interim results on Monday.
While Shoprite is expanding its operations, Pick n Pay is cutting back and streamlining its Pick n Pay stores, having closed 53 company-owned and franchise stores in the six months since February 2024.
This has been offset by the opening of 39 new stores across the business, resulting in net closures of 17 group stores.
The group’s main Pick n Pay supermarket brand has been most affected by the closures, with the group shutting 24 stores across operations (company-owned and franchise).
The new stores being opened mainly belong to the Boxer and Pick n Pay Clothing brands, with the former expected to see 53 new openings this year.