Shoprite reported an over 13% growth in sales for the first quarter of the 2024 financial year, despite South Africa’s difficult operating environment that has seen many other retailers buckle.
In a voluntary announcement released today, Shoprite informed shareholders that it increased sales for the first quarter by 13.2%.
The company’s South African supermarkets segment – the majority of which is represented by Shoprite, Usave, Checkers, Checkers Hyper and LiquorShop – increased sales for the first quarter by 13.3%.
However, the company also reported that its diesel expenses to operate generators across its South African supermarket business during the first quarter amounted to R281 million.
The increase in diesel cost resulted in the business incurring an additional R90 million charge compared to the quarter ended September 2022, the company said.
Shoprite opened 43 stores in South Africa during the first quarter – two Checkers, six Shoprite, five Usave, 18 LiquorShop, eight Petshop Science, two UNIQ by Checkers and two Checkers Outdoor.
Shoprite’s core Supermarkets South Africa operating segment is on track to open its planned
195 new stores for our 2024 financial year, the retailer said.
The company also saw growth in its non-South African supermarket segment, which consists of nine countries outside of the country.
This segment increased sales of merchandise for the first quarter by double digits in constant currency and by 9.7% in rands.
Shoprite plans to open 10 stores in this segment in the 2024 financial year.
The retailer’s furniture segment sales increased by 0.5% during the first quarter.
This growth comes despite South Africa’s tough operating environment, characterised by high interest rates, high inflation, and load-shedding.
Many other retailers, including Shoprite competitor Pick n Pay, have crumbled under this pressure.
While Shoprite continues to win market share, Pick n Pay is struggling to show real growth.
In its latest full results, Shoprite reported sales growth of 17.8% for the financial year that ended July 2023, increasing from R188 billion to R220 billion.
Checkers stores achieved an 18% increase in sales. Its online sales through its well-known Checkers Sixty60 grew by 81%.
In comparison, Pick n Pay’s sales only increased by 9% from R97.9 billion to R106.6 billion for the year ended February 2023.