Shoprite Holdings Plc Reports 17.5% Sales Growth in Supermarkets RSA

Published On: June 26, 2024Company: Shoprite Holdings Plc (SHOPRT.zm)
What were key drivers for Shoprite's sales growth during this period?
Sales growth was primarily driven by a successful Black Friday and festive season sales, reflecting positive customer growth and market share gains. Other factors include the Group's commitment to price leadership and the successful acquisition and integration of select stores and businesses from Massmart.

Summary

  • Supermarkets RSA, the core business of the Group, reported sales growth of 17.5% and contributes 80.1% to Group sales, representing a strong market performance.
  • The sales growth was buoyed by a record Black Friday and festive season sales, indicating successful market strategies and consumer behavior.
  • Internal selling price inflation was measured at 9.4%, impacted by exposure to commodities where inflation has been notably high.
  • Supermarkets RSA, without considering the impact of LiquorShop, first quarter sales increased by 16.6% and second quarter sales grew by 15.5%.
  • Different branches reported growth – Checkers and Checkers Hyper at 16.9%, Shoprite and Usave at 15.1%, and Supermarkets RSA LiquorShop at 35.6%.
  • Supermarkets Non-RSA sales, in Rand terms, increased by 17.5% contributing 9.4% to Group sales. In terms of constant currency, sales increased by 6.9%.
  • The Furniture segment, composed of OK Furniture, OK Power Express, and House & Home, showed sales growth of 8.6% — contributing 3.7% to Group sales.
  • The Other operating segments, including OK Franchise, Transpharm, Medirite Pharmacies, Checkers Food Services, and Computicket, posted a sales growth of 12.5%, making up 6.8% of Group sales.
  • The financial period had considerable implications, including an increase in employee costs, additional spending on diesel, and an insurance claim relating to loss of profits.
  • Acquisition of select stores and businesses from Massmart has been successfully integrated into core South African supermarket operations.

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About Shoprite Holdings Plc (SHOPRT.zm)

Shoprite Holdings Plc is one of the largest supermarket and retailing companies in Zambia. With over 10 outlets mainly located in major towns across Zambia, it is the most recognised and trusted name in the retail sector. Additionally, Shoprite delivers convenience, quality products, and a wide range of value to its customers. Driven by its strategic focus on digital transformation, it also offers e-commerce and mobile services including digital payment options such as mobile wallets, etc. Shoprite is listed on the Lusaka Securities Exchange.

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