- The Shoprite group received 22 months of uninterrupted market share gains, despite Covid-19 disruptions and subdued consumer spending.
- Its Supermarkets RSA business, which includes the Checkers and Checkers Hyper brands, created 4 305 new jobs during the period, and achieved 5.6% sales growth.
- The group’s furniture segment, made up of OK Furniture and House & Home, reported a 15.7% sales growth to R3.8 billion.
Supermarket chain Shoprite said it has received 22 months of uninterrupted market share gains, showing that even with the Covid-19 disruption and subdued consumer spending, the group’s position in the market is unshaken.
Africa’s largest retailer said on Tuesday that group sales grew by 4.7% to approximately R83.4 billion for the six months to 27 December 2020.
The group said its Supermarkets RSA business – which comprises the Shoprite, Usave, Checkers and Checkers Hyper banners – have not only achieved 22 months of uninterrupted market share gains, but also created a total of 4 305 new jobs during the period.
Supermarkets RSA achieved 5.6% sales growth, making up 78% of group sales.
Shoprite has been able to offer value to cash-strapped consumers, while also appealing to wealthier shoppers through the expansion of its FreshX stores and the Checkers Sixty60 one-hour grocery-delivery app.
First-half sales growth of the group’s South African liquor business, represented by Shoprite LiquorShop and Checkers LiquorShop, were negatively impacted by the Covid-19 lockdown regulations. Sales in the liquor business declined by 21.8% for the period under review, representing 5.5% of Supermarkets RSA’s sales.
The group noted that customer visits for the six months declined by 16.3%; however, average basket spend increased by 26.2%.
Shoprite’s “other” operating segments – representing 7.1% of group sales and comprising the OK franchise, Transpharm, MediRite Pharmacies, Checkers Food Services (CFS) and Computicket – saw a sales growth of 10% for the half-year.
The group’s furniture segment made up of OK Furniture and House & Home reported a 15.7% sales growth to R3.8 billion.
Shoprite withdrew from Kenya in February 2021 and is at the approval stage in terms of the sale of its supermarket operation in Nigeria. “From here, our capital allocated to the region remains at a minimum and we continue to manage costs as best as we can,” said CEO Pieter Engelbrecht.
The group’s non-RSA reported sales for the six months declined by 8.4% in rand terms.
The adjusted diluted headline earnings per share rose 17% to R4.16 in the six months to end-December.
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