The Shoprite Group has reported a robust 12.0% increase in total merchandise sales for the 52 weeks ended June 2024, reaching approximately R240.7 billion.
The group expanded its footprint significantly, adding a net 292 stores, including 73 OK Franchise stores, bringing the total to 3,639 stores from continuing operations.
Supermarkets RSA Performance
Shoprite's core business, Supermarkets RSA, achieved a 12.3% sales growth, contributing 81% to group sales.
This is a notable performance, especially when compared to the prior year's 17.8% increase.
Key highlights from Supermarkets RSA include:
Second-half sales growth of 10.1%, despite a higher comparative base due to the inclusion of stores acquired from Massmart Holdings.
Like-for-like sales growth of 6.3% for the period, with Massmart stores included only in the second half.
Average internal selling price inflation of 5.8%, ending at 3.0% in June 2024.
Checkers and Checkers Hyper reported a 12.3% sales growth, with online sales from Checkers Sixty60 surging by 58.1%.
Shoprite and Usave saw a 10.7% increase in sales.
LiquorShop sales grew by 20.0%.
The division opened a net 201 stores, ending the year with 2,322 stores. These included 20 Shoprite, 22 Usave, 25 Checkers, and 71 LiquorShop stores. Additionally, Petshop Science, Checkers Outdoor, UNIQ clothing, and Little Me added 33, 14, 13, and 3 new stores respectively.
Other Operating Segments
Shoprite's other operating segments, which include OK Franchise, Transpharm, Medirite, Red Star Wholesale Catering Services, and Computicket, reported a 21.1% increase in sales, representing 7.4% of Group sales. Noteworthy performance includes:
A 23.8% increase in sales for OK Franchise, which opened a net 73 stores, bringing the total to 608 stores.
Seven new Medirite Plus standalone drug stores opened, totaling 13 stores, in addition to the 126 Medirite in-store pharmacies within South African supermarkets.
The Group highlighted significant operational costs due to load-shedding. The cost of diesel for generators across the Supermarkets RSA store base amounted to R754 million for the year, with R500 million in the first half and R254 million in the second half.
This decrease in diesel costs is balanced by an anticipated mid to low single-digit increase in electricity expenses.
Shares in the retailer traded nearly 3% higher following the update on Tuesday and have increased nearly 17% over the past year.
Over the same period, loss making Pick n Pay has declined 38.5%, while Spar is up 15%, and Woolworths has slumped 26%.
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