Shoprite versus Pick n Pay – the winner is clear

Shoprite and Pick n Pay’s latest financial results show that Shoprite is a clear winner in the South African food retail war.

Shoprite released its interim results on 5 March 2024, which revealed that it increased sales by 13.9% to R121.1 billion.

Shoprite – which owns brands such as Checkers, House & Home, OK, Uniq and Computicket – outperformed the South African retail market.

Checkers and Checkers Hyper increased sales by 13.7%, while Checkers Sixty60 increased sales by 63.1% over the six-month reporting period.

The retailer’s 23.6% reported gross margin is also marginally higher year-on-year due to supply chain efficiencies.

Trading profit increased by 10.7%, resulting in a trading margin of 5.5%, just below H1 2023’s 5.7%.

Shoprite opened 215 stores, expanding its continuing operations footprint to 3,543 stores. Total operations capital expenditure to continuing operations’ sales for the period was 3.1%.

Pick n Pay, in comparison, reported revenue growth of only 5.5% and a net loss of R571 million, a 226% decrease from the year before.

These figures formed part of Pick n Pay’s interim results for the 26 weeks that ended on 27 August 2023.

The retailer’s turnover increased marginally from R51.3 billion to R54.1 billion. Boxer SA was the biggest contribution to the sales growth.

Pick n Pay’s trading profit margin declined to 0.1% from 2.4%. Trading profit declined to R31.8 million from R1.25 billion the previous year – a 97.5% decrease.

The Pick n Pay board was so disappointed with the performance, particularly in Pick n Pay supermarkets, that it fired former CEO Pieter Boone.

The company appointed Sean Summers as its new CEO. He is a Pick n Pay veteran who previously led the group through a highly successful period.

Shoprite versus Pick n Pay

The table below compares Shoprite and Pick n Pay on core metrics. It shows Shoprite’s exceptional performance compared to Pick n Pay.

Percentage changeShopritePick n Pay
Revenue 13.72%5.39%
Trading Profit 10.23%-97.13%
Net Profit 2.75%-243.61%
Total Assets 12.49%-1.41%
Total Equity 7.26%-23.72%
Increase in built stores6.46%4.02%


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