Retail

Shoprite going from strength to strength

Shoprite is set to report strong results for the first half of its 2025 financial year, driven by its local supermarket business and a strong online sales performance.

Shoprite – which owns Checkers, Usave, and Checkers Sixty60 – saw its sales from continuing operations grow by 9.6% to around R128.6 billion in the six months ended 29 December 2024.

This growth was largely driven by the retailer’s Supermarkets RSA segment, which increased sales by 10.4% and contributed 83.7% to the group’s total sales. 

On a like-for-like basis, this segment grew sales by 6.1%, which is still far above the average internal selling price inflation of 1.9%.

Checkers and Checkers Hyper, including Checkers Sixty60, reported sales growth of 13.5%, with online sales from Checkers Sixty60’s on-demand platform increasing by 47.1%.

The Supermarkets RSA segment opened a net 248 stores over the past 12 months to a total of 2,485 stores. 

Of these net new openings, 30 were Shoprite, 28 Usave, 34 Checkers and 80 LiquorShop stores. The remaining 76 were new format, adjacent category specialist stores.

The retailer’s other segments also reported relatively strong performances.

Supermarkets Non-RSA saw sales increase by 4.1% in rand terms, although this excludes the effects of hyperinflation.

In constant currency terms, this segment saw sales growth of 17.9%.

This segment’s store base increased by a net of 10 stores over the past 12 months, reaching a total of 269 stores operating in nine countries. 

Shoprite’s other segments include OK Franchise, Transpharm, Medirite Pharmacies, Red Star Wholesale Catering Services, Computicket and its remaining Angola and Mozambique furniture business.

These segments reported sales growth of 6.2% and represent 7.7% of overall group sales.

OK Franchise performed particularly well, opening a net of 18 stores over the 12 months to end the period with 623 stores.

These results come after a tumultuous year for Shoprite, wherein the retailer made several big strategic moves.

Near the end of last year, the retailer purchased the remaining 50% shareholding of Pingo Delivery, the logistics powerhouse behind its Checkers Sixty60 offering.

It also entered into an agreement to sell its local furniture business, including the OK Furniture and House and Home brands, to Pepkor.

This sale is still pending approval from the Competition Commission, but Shoprite said it is “highly probable” that the deal with go through.

Shoprite will release its 2025 interim results on Tuesday, 4 March 2025.

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