Shoprite swallows Pick n Pay, SPAR and other stores

 ·31 Oct 2024

The Competition Commission has approved a slew of proposed transactions where franchise stores operating under Pick n Pay, SPAR, and an independent brand can be acquired by Shoprite.

The proposed transactions include:

  • Shoprite Checkers acquiring SPAR Carolina and TOPS—owned and operated by Intrax Investments 262.
  • Shoprite Checkers acquiring SPAR Diepkloof—operated by Manuglo Proprietary Limited.
  • Shoprite acquiring Van Riebeeck Park Pick ‘n Pay Liquor—owned by Van Riebeeck Park Foodlane Proprietary Limited.
  • Shoprite Checkers acquiring Sean’s Discount Liquor—owned by Issken CC.

All transactions were approved without conditions.

Shoprite Checkers is wholly owned and controlled by JSE-listed Shoprite Holdings.

The targetted stores are all independently owned by individuals or trusts outside of the franchise brands – ie, they are not company-owned stores within Pick n Pay and SPAR’s portfolios.

In all cases, the commission said it is of the view that the proposed transactions are unlikely to substantially lessen or prevent competition in any market and do not raise significant public interest concerns.

“(The commission) will continue to monitor future acquisitions, including small mergers, in local markets,” it said.

Shoprite indicated this week that it is on an expansion drive, opening new stores across the country.

The group published a voluntary shareholder statement on Tuesday (29 October), providing an update on operations for the quarter period ending September 2024, which included its latest store figures.

On a net basis, the Group opened 68 stores during the first quarter of the year. The majority of these, a net 53 stores, were opened in South Africa.

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.

This stands in contrast to the group’s competitor, Pick n Pay, which is cutting back and streamlining its Pick n Pay store network, 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.


Read: How much you would have if you invested R1,000 in Woolworths, Shoprite, Pick n Pay and SPAR twenty years ago

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