South Africa’s biggest retailer spent R24 million to keep the price of one ‘superfood’ below R15

Shoprite has spent R24 million since June 2024 to keep the price of cabbage affordable for everyday South Africans.

South Africa’s largest retailer said this forms part of its commitment to supporting household food security.

While retail margins are notoriously thin, the group can afford to maintain prices for specific items this low through its enormous scale and optimised supply chain.

Shoprite has taken advantage of these efficiencies in its business to keep certain essential items, including its iconic R5 loaf of bread, priced low.

The group’s discount brand, Usave, also offers a range of 459 essential products sold for less than R10.

These low-price items were discussed in Shoprite’s Annual Report for the 2026 financial year, which was released on 9 October 2026.

Across its Supermarkets RSA segment, which includes Usave, Shoprite reported internal selling price inflation of 0.8% for the year, down from 2.3% in 2025.

This marked a seven-year low for the group, with Shoprite explaining that it passed cost relief on to customers through its pricing and promotional activities.

It said 11,500 items were sold at a lower price in 2026 than in 2025. This included specific brands of soap, rice, eggs, pilchards, maize meal, and washing powder.

One item Shoprite paid specific attention to was cabbage, with the retailer having spent R24 million since June 2024 to keep cabbages affordable.

“In many respects an original ‘superfood’, cabbage is one of the most nutrient-dense foods available, rich in vitamins C and K, fibre, antioxidants, and minerals,” the retailer explained. 

“Unlike some regional fruits and vegetables, cabbage grows easily across South Africa and has long been a cornerstone of informal markets and household food gardens.” 

Despite its abundance and local production, Shoprite said cabbage is not immune to rising costs, including fuel, fertiliser, and labour. 

However, due to its importance in South African diets, Shoprite absorbed rising costs to cap cabbage prices at R12.99 at Usave and R14.99 at Shoprite supermarkets.

Shoprite’s control over prices

Shoprite CEO Pieter Engelbrecht previously explained that the retailer is able to cap the price of certain products due to its scale and supply chain.

In the retailer’s annual report, it elaborated on how these two factors work in tandem, saying it comes down to a combination of scale, supply chain control, cost discipline, private label development, and tech-driven efficiencies.

Critical to this is that Shoprite operates a fully corporate-owned, centralised distribution network comprising distribution centres across the country.

By managing its logistics end-to-end without outsourcing, the retailer has been able to cut intermediary costs, eliminate waste, and pass those savings on to customers.

As South Africa’s largest grocery retailer, with a network of 3,478 stores, Shoprite also has immense buying power with suppliers.

The group can leverage this volume and scale when procuring goods to negotiate lower input costs with suppliers, much like consumers buying in bulk.

On top of this, Shoprite has launched a series of house brands, also known as private label brands, over the years, including Ritebrand, Ubrand, and Homegrown.

These brands mean Shoprite has full control over the product supply chain, enabling it to deliver goods at lower prices than mainstream national brands.

The group also sources 88% of these private-label products from local manufacturers, further reducing input costs by avoiding import duties and lowering its exposure to global supply chain volatility.

Shoprite is able to supercharge these factors at its discount brand, Usave, in particular by limiting its offerings.

Usave operates on a limited-assortment model, carrying 1,900 high-turnover lines rather than the tens of thousands seen at traditional grocery stores.

In doing so, Usave can reduce operating costs per store, enabling lower price markups.