Standard Bank said Monday that Shoprite, Africa's largest retailer, has secured R1.2 billion in vehicle and asset financing to bolster its supply chain expansion efforts.
With over 2,900 stores across the continent, Shoprite has allocated R8.5 billion to propel the next phase of its multi-year supply chain expansion project, aimed at meeting the anticipated volume and logistics demands of the coming decade.
Over the next two years, the company plans to augment its distribution centre capacity by more than 200,000 square meters, a move geared towards supporting the growth of its 2,237 South African supermarkets.
Standard Bank noted that the R1.2 billion financing deal ranks among the largest vehicle and asset finance agreements it has facilitated, aligning with its strategy for growth across Africa.
Shoprite has previously said that its investment in expanding supply chain capabilities is progressing smoothly, with plans approved to augment distribution centre capacity by over 210,000 square meters by the conclusion of the 2025 financial year.
The company's supply chain infrastructure roadmap aims to ensure scalability and agility within its network to accommodate its prolific growth trajectory.
It reaffirmed its commitment to continuous improvement, encompassing store growth, refurbishments, multi-year supply chain expansion, digital initiatives, and diversifying revenue streams.
The retailer has seen a 15.6% increase in its share price over the past twelve months.
For the six-month period ended December 2023 (H1 2024), the group's primary business segment, Supermarkets RSA, which contributes 80.5% to overall sales, experienced a robust sales growth of 14.6%.
“Sustained high level of execution and continued customer momentum together with record Black Friday and festive season trade has extended the period of uninterrupted market share gains achieved by our core South African supermarket brands to 58 months,” the group said.
Checkers and Checkers Hyper reported sales growth of 13.7%, while Checkers Sixty60 online sales surged by an impressive 63.1%.
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