As the battle amongst South Africa’s biggest retailers continues to rage on, the tug of war for dominance in the low-cost segment is shaping up. <\/p>\n\n\n\n
This is particularly prevalent in the discount supermarket war between Shoprite’s Usave, and Pick n Pay’s Boxer.<\/p>\n\n\n\n
In the last financial year, Usave increased sales by 13.2% to approximately R11 billion in FY2024, while Boxer Superstores saw an annual turnover of R37.4 billion and trading profit of R2.1 billion (FY2024)<\/p>\n\n\n\n
With these ventures proving lucrative, these big brands are pursuing ways to turbocharge their expansion.<\/p>\n\n\n\n
Boxer on the JSE<\/strong><\/p>\n\n\n\n Boxer started as more of a rural or smaller-town operator, however, it has boomed since then.<\/p>\n\n\n\n According to Pick n Pay, Boxer has a market share of 68% of the discount grocery retail market and an estimated share of 4.2% of the formal grocery market.<\/p>\n\n\n\n As of October 2024, there are 308 Superstores, 162 Liquor Stores and 30 Build Stores across South Africa.<\/p>\n\n\n\n Boxer has on average added a new store every week for the last 3 financial years and has experienced a 14% CAGR in store numbers over the same period.<\/p>\n\n\n\n It grew its turnover at a South African market-leading CAGR of 18.6% between FY2022 and FY2024, with like-for-like growth of 7.7%.<\/p>\n\n\n\n Its lean model, with fewer stock-keeping units (3,000 vs. 18,000 at Pick n Pay), helps keep costs low, allowing Boxer to negotiate favourable supplier prices and has deep penetration in under-serviced markets.<\/p>\n\n\n\n