The secrets behind Shoprite’s success

Shoprite’s decision to consolidate its business around its South African core and embrace technology and innovation has driven its impressive growth in recent years. 

This is feedback from BDO South Africa Consumer Business Partner Faheem Hoosen, who said that Shoprite’s retail strategy is hitting all the right marks, and other retailers can learn a lot from it. 

Shoprite owns top brands, including Checkers, House & Home, OK, Uniq and Computicket, and they seemingly can’t put a foot wrong when it comes to proving their resilience in the market. 

The group has shown remarkable growth across all of its major retail store chains and has consistently delivered double-digit sales growth.

For the half-year to the end of December 2023, Shoprite increased sales by 13.9% to R121.1 billion, driven by its supermarket business in South Africa. 

Checkers and Checkers Hyper increased sales by 13.7%, while Checkers Sixty60 increased sales by a further 63.1% over the six months.

Shoprite opened 215 stores in the six months to the end of 2023, expanding its continuing operations footprint to 3,543 stores. 

Hoosen attributes these strong results mainly to the group’s decision to consolidate its business across the continent and place a firm focus on its existing core business within South Africa. 

This focus has primarily been on seven categories where Shoprite had a below-average market share. Since then, it has returned to its average index, contributing significantly to its growth.

Another key factor is the company’s seamless integration of digital channels and advanced technology, which enables it to maintain its competitive advantage. 

He explained that Shoprite has leveraged technology to enhance customer experience and stay ahead of the competition, from the development of an AI-powered pricing tool to Checkers Sixty60’s on-demand delivery service. 

Shoprite’s strategic approach to store expansion also demonstrates a vital understanding of local demographics and community needs. 

By tailoring store offerings to match the unique demands of each locale and forging partnerships with local businesses, Shoprite has created an immersive shopping experience that resonates with customers. 

This includes introducing tailored stores within stores that bring familiar brands such as Starbucks, Krispy Kreme, and Kauai into strategic locations.

Shoprite has also taken a proactive stance on sustainability, aligning its business practices with environmental and social responsibility. 

This not only attracts conscientious shoppers but also contributes to long-term business resilience.

Entrenching loyalty is also key, particularly when shoppers ensure that every cent is accounted for. 

For example, Shoprite has gone to great lengths to ensure that their brand is not only top of mind, but loved by consumers. 

The expansion of the Checkers Sixty60 brand is a case in point. After starting with delivery bikes, the brand moved into selling branded toys that consumers snapped up. 

Now, they have expanded into selling a range of fun clothing that has gone viral across social platforms, driving sales and building awareness.