South Africa’s biggest retailer, Shoprite, says it expects its earnings to shoot up by more than 20% for the full year ending June 2025, with over 190 new stores opening nationwide.<\/p>\n\n\n\n
In a trading statement for the 12 months ending 29 June, the group anticipates its headline earnings per share to increase between 15% and 25% for the period in its total operations.<\/p>\n\n\n\n
For its continuing operations\u2014which excludes the furniture business held for sale in Mozambique and Angola, its Malawi operations and its Ghana operations\u2014headline earnings are expected to grow between 9.4% to 19.4%.<\/p>\n\n\n\n
This is based on restated figures for the prior periods, factoring in the ongoing sale of its furniture business to Pepkor, which has been delayed due to competitors’ appeals to the Competition Tribunal.<\/p>\n\n\n\n
According to Shoprite, the strong growth in earnings is attributed to the group’s focus on its core South African supermarkets business, which accounts for the vast majority of its sales.<\/p>\n\n\n\n
Total sales were restated at R232 billion for the 2024 full year, of which the RSA business accounted for R195 billion, or 84% of the total.<\/p>\n\n\n\n
The group expects to see overall sales growth of 8.9% for the year\u2014but this is higher at 9.5% when looking at the RSA business. Like-for-like (same store) growth measured 4.8%.<\/p>\n\n\n\n
Shoprite noted that the RSA supermarkets segment has now extended its unbroken market share gains for a fifth consecutive year. <\/p>\n\n\n\n
The group recorded internal selling price inflation averaging 2.3% for the year, coming in lower than headline inflation (c3.0%).<\/p>\n\n\n\n
Checkers and Checkers Hyper, inclusive of Checkers LiquorShop, reported sales growth of 13.8%, and Shoprite and Usave, inclusive of Shoprite LiquorShop, reported sales growth of 5.9%.<\/p>\n\n\n\n
Notably, the group’s online business continued to thrive. Online sales through its on-demand delivery platform, Sixty60, increased by 47.7%.<\/p>\n\n\n\n
Following the acquisition during the first half period of the remaining 50% share capital of Pingo, the group’s last-mile logistics provider, Shoprite assumed responsibility for both sale of merchandise an delivery to clients.<\/p>\n\n\n\n
As a result, this delivery income and the Xtra Savings Plus subscription income earned, together with the related delivery expenses incurred subsequent to the acquisition, are classified as part of sale of merchandise and cost of sales, respectively.<\/p>\n\n\n\n Running counter to its competitors in the market, the group has been on a significant expansion drive with store openings across its markets.<\/p>\n\n\n\n In South Africa, the group opened 194 main banner supermarkets over the year, including 43 Shoprite stores, 38 Usave stores, 29 Checkers stores and three Checkers Hyper stores. <\/p>\n\n\n\n In addition, the LiquorShop business added 36 Checkers and 45 Shoprite LiquorShops, respectively.<\/p>\n\n\n\n “We continue to expand our footprint as part of our omnichannel growth strategy designed to extend our reach in adjacent categories where we are currently under-represented,” it said.<\/p>\n\n\n\n This includes opening 60 new Petshop Science stores, taking the brand to a total of 144 stores.<\/p>\n\n\n\n Checkers Outdoor added eight new stores, for a total of 28 stores; Uniq Clothing by Checkers added 10 new stores, for a total of 30 stores, and Little Me opened one new store, for a total of 11 stores.<\/p>\n\n\n\n These openings stand in stark contrast to other major retailers that are slowing down expansion or continue to downsize their footprints to secure revenue growth and profitability.<\/p>\n\n\n\n Notably, Pick n Pay is closing loss-making stores or converting them to Boxer stores (which is expanding), while SPAR is returning its focus to core South African operations amid a costly exit from Europe.<\/p>\n\n\n\n Shoprite is scaling down its presence in the furniture segment, also focusing on core grocery operations.<\/p>\n\n\n\n The group is in the process of selling its furniture operations to Pepkor. <\/p>\n\n\n\n All relevant authorities in the applicable non-South African territories approved the proposed transaction, and the South African Competition Commission made a positive recommendation to the South African Competition Tribunal.<\/p>\n\n\n\n However, the Tribunal granted Lewis Stores an application to intervene as a participant in the matter, which has delayed the sale.<\/p>\n\n\n\n Shoprite said it is confident that the sale will proceed, and has listed the segment under discontinued operations.<\/p>\n","protected":false},"excerpt":{"rendered":" South Africa’s biggest retailer, Shoprite, says it expects earnings to shoot up by more than 20% for the full year ending June 2025, with over 190 new stores opening across the country.<\/p>\n","protected":false},"author":10,"featured_media":789327,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[7520],"class_list":["post-834032","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-shoprite"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/834032","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\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=834032"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/834032\/revisions"}],"predecessor-version":[{"id":834036,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/834032\/revisions\/834036"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/789327"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=834032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=834032"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=834032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Total operations<\/th> Restated June 2024<\/th> Estimated June 2025<\/th> Expected Change<\/th><\/tr><\/thead> Sale of merchandise<\/td> R240.7 billion<\/td> R262.3 billion<\/td> 9.0%<\/td><\/tr> Basc EPS (cents)<\/td> 1,148.6<\/td> 1,343.8 to 1,458.6<\/td> 17.0% to 27.0%<\/td><\/tr> HEPS (cents)<\/td> 1,191.4<\/td> 1,372.0 to 1,491.2<\/td> 15.2% to 25.2%<\/td><\/tr> Diluted HEPS (cents)<\/td> 1,186.3<\/td> 1,367.1 to 1,485.7<\/td> 15.2% to 25.2%<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n Opening new stores across the country<\/h2>\n\n\n\n