Shoprite sales improve to R168 billion

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  • Supermarkets RSA sales up 9.3%
  • Checkers and Checkers Hyper sales increase by 10.9%
  • Supermarkets Non-RSA sales improve by 6.8%

South Africa’s retail giant Shoprite Holdings Limited posted an 8.1% increase in the total sale of merchandise from continuing operations to approximately R168 billion for the 53 weeks ended 4 July 2021 with the group’s core business Supermarkets RSA, contributing 79.7% to the growth.

The rise in the total sale of merchandise is from a comparable 2020 same period of R164.5 billion.

In a trading update, the group said Supermarkets RSA sales went up 9.3% from a comparative 2020 increase of 7.3%.

Notwithstanding the high base reported for the second half of the period last year, Checkers and Checkers Hyper reported sales growth of 10.9% while Shoprite and Usave sales were up by 8.8%.

However, the group’s LiquorShop business sales growth was impacted by the mandated liquor trade closures formed part of the COVID-19 lockdown regulations, hence posting a narrow sales increase of 4.4%.

“In total, our LiquorShop business was closed for 144 days over the 53 weeks (79 days during the first half and 65 days during the second half,” the group said. Supermarkets RSA opened a net of 87 stores in the 53 weeks.

During the period under review, Supermarkets Non-RSA continued to operate in regions challenged by macroeconomic and consumer affordability constraints, worsened by the impact of COVID-19 restrictions and regulations. Nonetheless, constant currency sales from continuing operations increased by 6.8%.

“Currency devaluation continues to weigh on reported sales. In rand terms, Supermarkets Non-RSA’s sales from continuing operations declined by 7.5%. Supermarkets Non-RSA continuing operations opened a net of five stores,” the group said.

The group’s Furniture segment made up of OK Furniture and House & Home, improved sales by 24.6% from a prior year comparative of 13.5%.

The Furniture segment closed a net of 16 stores during the period under review.

Other operating businesses, comprising of OK Franchise, Transpharm, MediRite Pharmacies, Checkers Food Services (CFS), and Computicket, reported a sales growth of 10% with the OK Franchise division achieving an 8.2% sales increase and adding a net of 36 stores in the 53 weeks.

The group said the terms of their Retail Supermarkets Nigeria Limited (RSNL) subsidiary have been concluded and their Kenyan operations have been closed.

“Furthermore, in line with the Group’s Non-RSA review process, our operations in Madagascar and Uganda have been classified as discontinued,” the group added.

The Group plans to publish its 2021 year-end results on SENS by 7 September 2021.

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