Skip to main content

Shoprite notes gloomy Christmas sales

| Retailer trading results

Santa spent more on school essentials than toys during the festive season — a sign of how financially stressed SA's middle-class is.

Shoprite's share price fell as much as 5.7% to R175.32 after it warned shareholders its interim results would show flat sales.

Joining the queue of JSE-listed retailers reporting disappointing Christmas sales, Shoprite said its total group sales declined 0.3% in the December quarter, the second of its financial year.

The drop in sales in December quarter followed just 0.42% growth in the September quarter, which Shoprite blamed on teething glitches in a new Gauteng distribution centre and strikes.

Shoprite is scheduled to release its interim results on February 26.

“Liquor stores remain a standout performer with 20.09% sales growth for the period,” CEO Pieter Engelbrecht said in Tuesday's operating update.

“The group's core business, Supermarkets RSA, achieved 2.58% sales growth for the period. Persistently low internal food inflation in SA of only 0.2% for the period marks 18 months of near stagnant prices of basic foods in which the group has a larger market share,” Engelbrecht said

“The core Shoprite middle income consumer base remains under pressure. This was evidenced in Christmas sales in categories such as back-to-school essentials, which outperformed traditional discretionary purchases such as toys for the first time.”

Pin It

Related Articles

By: Bianke Neethling – Daily Investor SPAR experienced a massive drop in profit as the retailer is still dealing with the hangover of system issues in South Africa and inflationary pressures.
By: Drikus Greyling – Daily Investors Last month, Pick n Pay released its results for the year that ended 25 February 2024. They were disastrous.
By: Bianke Neethling – Daily Investor Pick n Pay reported its worst financial results in its listed history last week following years of mismanagement, but its new CEO has a plan to turn the company around.
By: Shaun Jacobs – Daily Investor In a trading statement for the 52-week period that ended 25 February 2024, Pick n Pay said it expects the company to post a loss of between R3.14 billion and R3.38 billion for the 2024 financial year.&n...
By Jacqueline Mackenzie - Business Live The group expects full-year Heps to increase by between 10% and 15%