South Africa’s biggest grocer, Shoprite Holdings, reported a 9.6 percent increase in annual sales yesterday as cash-strapped shoppers looked for value at its discount stores.
Although inflation and interest rates are rising globally, sapping consumer demand, Shoprite’s mainstay South African customers continued to spend, helped by government Covid-19 grants, which had added to household disposable incomes.
Shoprite, with more than 2400 stores in 11 African countries, said total sales for the 52 weeks to July 3 rose to approximately R184.1 billion from R168bn in the 53 weeks prior, despite the impact of civil unrest last year that destroyed its stores.
Sales were bolstered mainly by its South African supermarkets business, which achieved sales growth of 10.1 percent, while sales at its liquor business rose by 44.5% as lockdown restrictions on the sale of alcohol eased, it said in its trading update.
Internal selling price inflation measured 3.9 percent for the year, well below the country’s food inflation rate, although the group’s second half inflation measured close to 5 percent as it accelerated in the fourth quarter, Shoprite said.
Outside South Africa, sales rose by 10.4 percent, while its other businesses, such as the OK grocery franchise and drug stores, grew sales by 8.5%.
Smaller rival Pick n Pay grew sales by 10.7 percent in the 18 weeks to July 3.
- Reuters