Shoprite Holdings’ sales at a group and core South African Supermarkets segment level increased 18.6% and 19.9% respectively in the quarter to September 30, well ahead of selling price inflation and the market as a whole.
Africa’s biggest grocery store group said in an update yesterday that the elevated level of sales growth was influenced by reporting against trade impacted by the July 2021 social unrest.
“The group continues to raise the bar in pursuit of delivering the lowest prices, unmatched availability and market-leading innovation. Ably supported by the expertise embedded across our supply chain, our trading divisions have begun the execution of our festive season plan to provide our 28.5 million Xtra Savings customers with unsurpassed value and incredible ranges,” the update said yesterday.
At Supermarkets RSA, the core segment represented mainly by Shoprite, Usave, Checkers, Checkers Hyper and LiquorShop, sales from continuing operations increased by 13.3% in the three months to September. Internal selling price inflation measured 8.3%.
Market share for the 52 weeks ending September 2023 increased 124 basis points over the same period last year, extending the period of uninterrupted market share gains in the South African supermarket business to 55 months, the group said.
The diesel cost to operate generators due to load shedding amounted to R281 million in the three months. The increase in diesel cost resulted in an additional R90m charge.
On a net basis, the group opened 81 stores in the first quarter. Most were opened in the South African supermarkets segment.
“Looking ahead, we are on track to open our planned 314 new stores for our 2024 financial year.”
Supermarkets RSA opened 43 stores in the first quarter: two Checkers, six Shoprite, five Usave, 18 LiquorShop, eight Petshop Science, two UNIQ by Checkers and two Checkers Outdoor.
The Supermarkets RSA operating segment was on track to open its planned 195 new stores for the 2024 financial year, the group said.
At Supermarkets Non-RSA, trading from nine countries outside of South Africa, merchandise sales increased by double digits in constant currency and by 9.7% in rand terms.
Supermarkets Non-RSA continuing operations’ store growth was limited to two new stores, a Shoprite and one LiquorShop, both in Eswatini. The segment planned to open 10 stores in the 2024 financial year.
The group’s Furniture segment’s store base fell by two stores to end with 432 stores. Two new stores were planned before the end of the 2024 financial year.
The group’s Other operating segments saw sales to the OK Franchise division increase by 22%. OK Franchise opened 37 new stores, ending with 572 stores. Other operating segments plan to add a total of 107 stores during the 2024 financial year.
Shoprite’s share price fell 0.79% to R249.20 yesterday afternoon, but the price is trading close to its three-year high.
BUSINESS REPORT