Shoprite shows exceptional growth
Africa's largest food retailer reported a double-digit increase in sales in the second half of 2016.
The Shoprite Group reported excellent growth for the six months to December 2016, increasing turnover by 14% from N$62.5 billion to N$71.3 billion unaudited results show.
The Group's non-South African supermarkets recorded sales growth of 32.3% assisted by higher inflation and achieved in the face of low commodity prices and forex shortages in certain countries. Growth on a like-for-like basis was 14.2%.
Taken at constant currencies, sales grew by 51.7%.
Last year may have been a difficult year for retail in Africa but consumers still came in droves to Shoprite, which reported double-digit sales growth on the continent in the six months to December.
In a welcome surprise, the group's non-South African supermarkets recorded sales growth of 32.2%, a result that was achieved in the face of low commodity prices and forex shortages in certain countries.
Africa's largest food retailer reported a 10.7% increase in sales from its local operations supported by good festive trading.
Growth on a like-for-like basis was 7.4% with internal inflation averaging 7.4% for the period.
Absa Wealth & Investment Management analyst Chris Gilmour said Shoprite had done remarkably well outside of SA.
“This speaks well about how well positioned they are in the rest of Africa. It's an outstanding result,” he said.
Overall, non-South African supermarket growth on a like-for-like basis was 14.2%. Taken at constant currencies, sales grew 51.7%.
Cratos Wealth senior analyst Ron Klipin said Shoprite had shown consistent strength and its competitors would be hard-pressed to produce better numbers.
“Africa was the star performer; those operations are looking very good indeed. Furniture looks strong as well despite the National Credit Act having had some impact on that sector.
“I would say its numbers look well ahead of its peers,” Klipin said.
Shoprite's core market is the lower-income consumer.
Shoprite said its furniture division grew sales 10% for the period.
The other operating segments had achieved growth of 10.5%, mainly driven by the OK Franchise division's strong performance, the company said.
These will be the last results with Whitey Basson at the helm. Basson retired at the end of 2016.
New CEO of the group, Pieter Engelbrecht, is a mere 18 days into the top job.
The responsibility now falls on him and his management team to flesh out a possible deal with Steinhoff.
The Group's non-South African supermarkets recorded sales growth of 32.3% assisted by higher inflation and achieved in the face of low commodity prices and forex shortages in certain countries. Growth on a like-for-like basis was 14.2%.
Taken at constant currencies, sales grew by 51.7%.
Last year may have been a difficult year for retail in Africa but consumers still came in droves to Shoprite, which reported double-digit sales growth on the continent in the six months to December.
In a welcome surprise, the group's non-South African supermarkets recorded sales growth of 32.2%, a result that was achieved in the face of low commodity prices and forex shortages in certain countries.
Africa's largest food retailer reported a 10.7% increase in sales from its local operations supported by good festive trading.
Growth on a like-for-like basis was 7.4% with internal inflation averaging 7.4% for the period.
Absa Wealth & Investment Management analyst Chris Gilmour said Shoprite had done remarkably well outside of SA.
“This speaks well about how well positioned they are in the rest of Africa. It's an outstanding result,” he said.
Overall, non-South African supermarket growth on a like-for-like basis was 14.2%. Taken at constant currencies, sales grew 51.7%.
Cratos Wealth senior analyst Ron Klipin said Shoprite had shown consistent strength and its competitors would be hard-pressed to produce better numbers.
“Africa was the star performer; those operations are looking very good indeed. Furniture looks strong as well despite the National Credit Act having had some impact on that sector.
“I would say its numbers look well ahead of its peers,” Klipin said.
Shoprite's core market is the lower-income consumer.
Shoprite said its furniture division grew sales 10% for the period.
The other operating segments had achieved growth of 10.5%, mainly driven by the OK Franchise division's strong performance, the company said.
These will be the last results with Whitey Basson at the helm. Basson retired at the end of 2016.
New CEO of the group, Pieter Engelbrecht, is a mere 18 days into the top job.
The responsibility now falls on him and his management team to flesh out a possible deal with Steinhoff.
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