The Shoprite Group announced the opening of a net total of 283 stores over the past 12 months, contrasting with its competitors, Pick n Pay and Spar, which have been scaling back operations in South Africa.

The retailer reported its interim financial results for the 26 weeks ending 29 December 2024 highlighting strong growth across all segments, with its core South African Supermarkets division surpassing R100 billion in sales for the period.

Key financial information

-Group revenue increased by 9.4% to R130.8 billion
-Group sale of merchandise increased by 9.6% to R128.6 billion
-Supermarkets RSA sale of merchandise increased by 10.4% to R107.7 billion
-Diluted headline earnings per share (DHEPS) increased by 9.9% to 659.9 cents
-Interim dividend per share increased by 6.7% to 285 cents (H1 2024: 267

The group increased its workforce by 2 989 people over the six months, to around 163,000 people.

Checkers

Excluding Checkers LiquorShop, the Checkers banner increased sales by R5.2 billion to R43.7 billion for the six months, increasing sales by 13.5%.

Checkers Sixty60, the group’s on-demand grocery delivery app increased sales by 47.1% (H1 2024: 63.1%), expanding the store base from which it serves Checkers customers to 601 stores (H1 2024: 505).

Checkers, inclusive of Checkers Hyper increased its store base over 12 months by a net of 34 stores to end the period with 339 supermarkets.

In terms of store openings and upgrade activity over the six-month interim period under review:

– Checkers and Checkers Hyper opened a net of 18 new stores, three of which were in our new smaller Checkers Foods neighbourhood format bringing the total in this new smaller format to 12 stores
– Checkers’ successful FreshX conversion programme continued with the upgrade of 29 stores ending the period with 144 stores trading in this format (approximately 40% of the Checkers store footprint)

In terms of smaller, adjacent stand-alone format stores, 54 were opened during the six months:
– 42 Petshop Science premium pet stores to total 128.
– Eight Uniq clothing by Checkers stores to total 30.
– Four Checkers Outdoor stores to total 26.

Shoprite and Usave

Shoprite and Usave, including Shoprite LiquorShop, increased sales by R3.9 billion or 7.1% to R59.2 billion, contributing 55% to the group’s core Supermarkets RSA segment’s sales.

Excluding Shoprite LiquorShop, the two banners increased sales by R3.3 billion, to R52.8 billion, increasing sales by 6.7%.

Shoprite increased sales by 6.7%. Net store openings of 30 stores over the 12-month period resulted in Shoprite ending the period with 660 stores.

Over the six-month interim period Shoprite opened a net of 21 supermarkets.

Usave, our limited assortment no frills discount supermarket, increased sales by 6.8%. Net store openings of 28 stores over the 12-month period resulted in Usave ending the period with 480 stores.

Over the six months under review Usave opened a net of 18 supermarkets

The group’s other operating segments include OK Franchise, Transpharm, Medirite in-store pharmacies, Medirite Plus standalone drug stores, Red Star Wholesale Catering Services, Computicket and the reclassified Angola and Mozambique furniture operations.

Sales generated by this segment increased by 6.2% for the period and represent 7.7% of group sales.

Sales to the retailer’s OK Franchise business increased by 8.8% and the franchise division ended the period with 623 stores.

Shoprite Group CEO Shoprite Group CEO, Pieter Engelbrecht, said: “The growth in sales achieved over this important period is the result of detailed data-led planning and execution, evidenced by our three core South African trading banners and their adjacent new formats collectively adding R10.2 billion in sales to our base for the six months.

“In the context of selling price inflation of 1.9%, this quantum of additional spend, equating to 10.4% increase in sales was underpinned by strong volume growth as a result of across-the-board gains in the number of customers; customer visits and average basket spend.”

The chief executive said that while Africa’s largest retailer welcomes tailwinds from improved consumer and business confidence, “we are not relying on cyclical factors to power our growth”.

“We expect by far the majority of our growth short to medium term will continue to be achieved by our three distinct South African corporate owned and managed supermarket businesses as they focus on their respective customer segments and in doing so increase their share of wallet.”

Whilst small relative to the group, Engelbrecht said the retailer will continue to expand its new adjacent formats – clothing, baby, outdoor and pet.

Notably Petshop Science is now at 129 stores (March 2025) with sales for the interim period increasing by 56.9%.

“Whilst presently small in the group context, our expansion into these categories is meaningful in the universe of everyday purchases for our customers and important in terms of the role they play in our ecosystem which defines our roadmap for future growth.”