Skip to main content

Shoprite gains market share as store expansion continues

| Retailer trading results

Shoprite, the owner of Checkers and Usave stores, says it gained market share in its half year to end-December, with store expansion helping it achieve almost double-digit sales growth in its core SA business.

The group is eyeing a larger share of SA’s premium food retail segment, reporting that sales in SA grew 9.8% to R61.6bn in SA, which accounts for about three quarters of its business.

 

Checkers supermarket chain, inclusive of its 37 larger format hypermarkets, grew merchandise sales by 11.2% in the 26 weeks ended December 29, the group said.

The strategy of Checkers is to grow its share of spend in the mid-to-upper segment of the market continues to underpin the chain’s growth, it said.

Across the group’s major trading banners — Shoprite, Usave, Checkers and Checkers Hyper — it trades through 1,632 stores.

It opened 82 stores during 2019 and now has 28 Checkers with the FreshX format, which offer premium food offerings, such as sushi bars. The group is targeting 80 FreshX stores.

“Our group strategy to capture a larger share of SA’s premium food retail segment continues to be one of our drivers of growth as reflected particularly in the Checkers brand, together with hypers, growing sales by 11.2%,” said CEO Pieter Engelbrecht.

Profit fell, however, with the company no longer applying hyperinflationary accounting to its Angolan business, as it did in the prior comparative period.

Trading profit fell 3.9% to R4bn, with the group keeping its interim dividend per share unchanged at 156c.

The group said on Tuesday it had gained 1.1 percentage points of market share to 31.6% in its core SA business.

In its non-SA operating segment, which includes 14 countries, sales grew 4.8% in constant currency terms, but fell 3.1% in rand terms.

 


Related Articles

Spar’s IT system failure has cost the company R...

By: IOL News Local retailer Spar has been hit hard this financial year and said on Thursday that it will have to withhold a final dividend to save cash after a huge IT system failure this year.

Tough decisions made, sets the tone for a more ...

The SPAR Group lifted turnover 10.1% to R149.3 billion (2022: R135.6 billion) for the year ended 30 September 2023. This was largely driven off the back of strong performance from the Irish business which saw growth of 21.9% in ZAR terms. Souther...

Woolies’ online grocery sales surge

By: Myles Illidge – My Broadband Woolworth’s trading update for the 20 weeks ended 12 November 2023 has revealed that the increased penetration of its Woolies Dash food delivery service resulted in a significant increase in online sales.

Dis-Chem reports group revenue growth of 9.4% t...

In the six-month period ending 31 August 2023, Dis-Chem reported Group revenue growth of 9,4% to R17.9 billion over the corresponding half year period to 31 August 2022.

Clicks shares soar as it clocks in higher marke...

By Dieketseng Maleke - IOL Clicks’ share price surged 8% yesterday after it reported record market share gains and a hike in earnings.