WeeklySA_AdminUNAUDITED RESULTS: Group outperforms the market five years in a row with sale of merchandise increasing by 13.9% to R121.1 billion
By Ali Mphaki
The Shoprite Group opened a net number of 369 stores during the past twelve months creating 2 202 new jobs and recorded a 14.6% increase in sales from their core business segment equating to R12.4 billion in additional customer spend on the same period last year.
Announcing the Group’s results on Tuesday for the six-month period under review, CEO Peter Engelbrecht said the figures reflect the business’s incredible dedication to their customers whose support , both in-store and online via the digital Checkers Sixty60 app has resulted in Shoprite extending their period of uninterrupted market share gains in their core South African supermarket business to 58 months.
Engelbrecht said the 14.6% increase in sales from their core business segment equates to R12.4 billion in additional customer spend with the giant-retailer on the same period last year. Despite reporting against an exceptionally high base of sales growth of 17.5% for the same period last year, the 14.6% increase in sales for this interim period compares admirably to the rest-of-market growth in South Africa, per NielsenIQ, for the same period of 7.6%.
With a wide grin Engelbrecht was proud to announce Checkers and Checkers Hyper’s 13.7% sales increase, which he attributed to an “unwavering execution of the brand’s clear value proposition, continued store upgrades and advances in the areas of fresh, private label and on-demand execution by Checkers Sixty60” . Shoprite and Usave increased sales by 13.1%. Shoprite, with the inclusion of 51 stores acquired from Massmart Holdings Ltd (“Massmart”), increased sales by 13.2% whilst Usave, increased sales by 12.3%.
Engelbrecht said the Shoprite and Usave customer’s challenges and needs remain front and centre of their business, resulting in a steadfast commitment to lower prices.
Whilst the operating context in South Africa remains challenging and costly, especially taking into consideration the ongoing cost of diesel generators during load-shedding, Engelbrecht was most pleased to report an increase in profits and dividends for the period.
The Group continues to invest in the business on a number of fronts: tech and digital, supply chain, stores and of course, people.
“Over the six months we added a net of 197 new stores to total 3 543 stores and as a Group our commitment to employment growth resulted in the creation of 2 617 new jobs. In addition, our Shoprite Employee Trust expensed R122 million in employee distributions to eligible employees in South Africa with equivalent awards granted by subsidiaries in countries outside South Africa,” he said.
Team Shoprite has a base of close to 161 000 employees and the Group’s customer base is said to number 29 million in South Africa alone.
Unaudited results for the 26 weeks ended 31 December 2023 and cash dividend declaration
Double-digit growth sees half year sales reaching R121 billion
- Group sale of merchandise increased by 13.9% to R121.1 billion
- Supermarkets RSA sale of merchandise increased by 14.6% to R97.5 billion
- Diluted headline earnings per share (DHEPS) increased by 7.6% to 621.4 cents (2023: 577.5 cents)
- Interim dividend per share increased by 7.7% to 267 cents (2023: 248 cents)
