{"id":812543,"date":"2025-02-23T16:00:00","date_gmt":"2025-02-23T14:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=812543"},"modified":"2025-02-21T15:36:57","modified_gmt":"2025-02-21T13:36:57","slug":"how-much-money-you-would-have-if-you-invested-r1000-in-shoprite-woolworths-and-pick-n-pay-in-2015","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/812543\/how-much-money-you-would-have-if-you-invested-r1000-in-shoprite-woolworths-and-pick-n-pay-in-2015\/","title":{"rendered":"How much money you would have if you invested R1,000 in Shoprite, Woolworths, and Pick n Pay in 2015"},"content":{"rendered":"\n

Shoprite’s share performance has outperformed its peers over the last decade, while Pick n Pay and Woolworths’ share prices have declined.<\/p>\n\n\n\n

Although all three groups provide essential goods to customers, their fortunes have varied dramatically since 2015.<\/p>\n\n\n\n

Shoprite, which also owns Checkers, is the largest retailer in South Africa and continues to see strong growth on a robust operational performance, particularly within its core South African market.<\/p>\n\n\n\n

A key part of the group’s recent success is its ability to adapt to market demands and expand its offerings. This includes innovations like the rapidly growing Checkers Sixty60 delivery service.<\/p>\n\n\n\n

Shoprite CEO Pieter Engelbrecht recently highlighted the group\u2019s transformation, stating that it would previously take two decades to achieve R10 billion in revenue, which it now does every 15 days.<\/p>\n\n\n\n

In addition to its operation efficiency, Shoprite continues to invest in different sectors to drive growth, such as the fast-growing Uniq Clothing by Checkers.<\/p>\n\n\n\n

Despite a good decade for Shoprite, its competitors have faced some serious challenges over the last decade, many of them self-inflicted. <\/p>\n\n\n\n

Woolworth’s share price growth has been hampered by the country’s weak economic environment and its disastrous takeover of David Jones.<\/p>\n\n\n\n

Woolworths bought the Australian department store in 2014 for R21.4 billion and sold it for R1.1 billion eight years later.<\/p>\n\n\n\n

In addition to the initial purchase price, Woolworths also invested R7.2 billion in additional capital during David Jones’s tenure.<\/p>\n\n\n\n

Woolworths is not the only company to make a massive blunder over the last decade. Pick n Pay’s Ekuseni turnaround strategy turned into a disaster.<\/p>\n\n\n\n

On the back of losing market share to its competitors, Pick n Pay announced the Ekuseni turnaround strategy.<\/p>\n\n\n\n

The strategy focused on new customer value propositions, quickening Boxer growth, and achieving omnichannel and digital leadership.<\/p>\n\n\n\n

However, the strategy cost billions, and the group became technically insolvent not long after it was announced.<\/p>\n\n\n\n

Amid these financial struggles, Pick n Pay shelved the Ekuseni turnaround strategy and underwent a two-phased recapitalisation plan. <\/p>\n\n\n\n

This first included a Pick n Pay rights offer in August 2024, raising R4 billion. The second step was Boxer’s IPO, which raised R8.5 billion for the group.<\/p>\n\n\n\n

Shoprite<\/strong><\/h2>\n\n\n
\n
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Shoprite has been the best performer of the three retailers, increasing its share price by 56.57% over the last decade. This means that R1,000 invested in 2015 would now be worth R1,565.66.<\/p>\n\n\n\n

In its latest operational update for the second half of 2024, it increased the sale of merchandise from continuing operations by 9.6% to R128.6 billion, which excluded its furniture business held for sale.<\/p>\n\n\n\n

The group’s core business, Supermarkets RSA, achieved sales growth of 10.4%. Checkers and Checkers Hyper saw sales growth of 13.5%, including Checkers Sixty60.<\/p>\n\n\n\n

The group\u2019s core business, Supermarkets RSA, contributed 83.7% to group sales, which achieved sales growth of 10.4%.<\/p>\n\n\n\n

Woolworths<\/strong><\/h2>\n\n\n
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Woolworths is the second-best performer of the three but saw its share price drop by 36.70% over the last decade, meaning that R1,000 invested in the company in 2015 would not be worth R633.04<\/p>\n\n\n\n

Despite now exiting David Jones, the group still faces strong headwinds, including the poor performance of its apparel businesses in South Africa, Australia and New Zealand.<\/p>\n\n\n\n

Woolworths noted that it expects headline earnings to decrease by between 22% and 27% for the second half of 2024. <\/p>\n\n\n\n

Although the group’s food business continues to perform well, the lower contributions from the apparel businesses in South Africa, Australia and New Zealand were disappointing.<\/p>\n\n\n\n

Speaking with BusinessTech,<\/a> Chantal Marx, Head of Investment Research at FNB Wealth and Investments, noted that Woolworths\u2019 financial guidance was disappointing.<\/p>\n\n\n\n

Marx said the bottom-line guidance was tracking well behind full-year expectations, even if revenues beat expectations.<\/p>\n\n\n\n

However, she noted that consumer sentiment is improving due to moderating inflation, easing interest rates, and the prolonged suspension of load shedding.<\/p>\n\n\n\n

There is also improved consumer sentiment in Australia, and the uplift in retail sector sales buoyed by Black Friday were key highlights. <\/p>\n\n\n\n

Nevertheless, consumer behaviour and discretionary spending remain down amidst the elevated cost of living. <\/p>\n\n\n\n

Due to the stock’s near- and medium-term challenges, the stock is looking fairly valued on a forward PE of 14.1 times. <\/p>\n\n\n\n

Given the near- and medium-term challenges facing the group, Marx said that the stock looks fairly valued on a forward PE of roughly 14.1<\/p>\n\n\n\n

Pick n Pay<\/strong><\/h2>\n\n\n
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In last place is Pick n Pay, which has seen its share price drop by 37.77% over the last decade. This means that R1,000 invested in 2015 would now be worth R622.34. <\/p>\n\n\n\n

The two-step recapitalisation strategy followed the group recording an after-tax loss of R3.2 billion for the year ended 25 February 2024. <\/p>\n\n\n\n

The group is starting to see signs of life, with the company stating that better retail discipline has improved its company-owned supermarkets.<\/p>\n\n\n\n

This was a key part of the business turnaround, which focused primarly on Pick n Pay stores, especially those that were loss-making, and right-sizing the business.<\/p>\n\n\n\n

In its latest trading update for the 45 weeks ending 5 January<\/a>, the group also noted that like-for-like sales at Pick n Pay SA increased by 1.9%. <\/p>\n\n\n\n

Implementing the group’s Store Estate Reset plan resulted in total sales lagging like-for-like sales due to planned store closures and conversions.<\/p>\n\n\n\n

Boxer was once again a strong performer for the group, showing 11.4% (6.7% like-for-like) in the 45 weeks.<\/p>\n\n\n\n

Meanwhile, clothing sales growth in standalone stores was 10.0% (1.7% like-for-like), while Online sales growth stood at 42.5%, driven by growth in Pick n Pay asap! and Pick n Pay Groceries on the Mr D app.<\/p>\n\n\n\n

Shoprite vs Woolworths vs Pick n Pay<\/h2>\n\n\n\n
Company<\/strong><\/td>2015 Share Price<\/strong><\/td>2025 Share Price<\/strong><\/td>% Change<\/strong><\/td>What a R1,000 investment in 2015 is worth today<\/strong><\/td><\/tr>
Shoprite<\/td>R174.84<\/td>R273.74<\/td>56.57%<\/td>R1,565.66<\/td><\/tr>
Woolworths<\/td>R90.50<\/td>R57.29<\/td>-36.70%<\/td>R633.04<\/td><\/tr>
Pick n Pay<\/td>R48.32<\/td>R30.02<\/td>-37.77%<\/td>R622.34<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

This is the share price performance of Shoprite, Pick n Pay, Woolworths over the last decade – and the winner is clear. <\/p>\n","protected":false},"author":95,"featured_media":811779,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[4067,7520,949],"class_list":["post-812543","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-pick-n-pay","tag-shoprite","tag-woolworths"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/812543","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=812543"}],"version-history":[{"count":19,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/812543\/revisions"}],"predecessor-version":[{"id":813430,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/812543\/revisions\/813430"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/811779"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=812543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=812543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=812543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}