Shoprite closes financial year 2022 on high registering growth in all segments
SOUTH AFRICA – Giant retailer Shoprite, has booked a 9.6% growth in group sales to R184.1 billion (US$10.6 billion) in the 52 weeks to 3 July 2022, compared to 2021 financial year which included an additional week of trade.
The robust full-year performance was also reflected on the double-digit growth in headline earnings by 10.0% to 1 048.1 cents.
Its South African supermarket segment, representing 80.0% of Group sales, registered 10.1% rise in sales, while its non-RSA operations contributing 9.3% to group sales, recorded a 5.9% sales increase.
Its other operating segments which include OK Franchise, Transpharm, Medirite Pharmacies, Checkers Food Services and Computicket, attained 8.5% growth in sales.
Within its home market, the retailer’s discount namesake Shoprite and Usave supermarket businesses, which together make up 52.8% of supermarkets South Africa sales, increased sales by 7.2%.
Meanwhile, despite having two of its large format Checkers Hypers still closed due to the July 2021 social unrest, the company’s Checkers and Checkers Hyper supermarket business, which make up 39.8% of Supermarkets RSA sale of merchandise, increased sales by 9.1%.
The group’s LiquorShop business both in Checkers and Shoprite, which constitutes 7.2% of the segment’s sales, increased by 44.5%.
This is due to strong underlying growth and the fact that the business was closed for less days as a result of Covid-19 regulations this year.
The group’s community based Usave supermarket business increased sales by 11.4% while its on-demand one-hour delivery app Checkers Sixty60 continued to innovate and grow its sales despite reporting against an incredible growth trajectory established subsequent to its introduction two years ago.
During the period under review, Shoprite Group entered into an agreement with RTT Group (Pty) Ltd, the delivery partner for Checkers Sixty60., whereby the RTT Group on-demand business was transferred into a new company, Pingo Delivery (Pty) Ltd in which Shoprite Checkers (Pty) Ltd has a 50% shareholding.
Further to that, in recognition of the contribution made by its employees, the supermarket chain owner launched the Shoprite Employee Trust during the year.
In pursuit to grow its share in South Africa’s retail sector, Shoprite continued with its share buy-back programme and advanced its proposed acquisition of Cambridge Food, Massfresh as well as Masscash Cash and Carry to the Competition Tribunal approval stage.
“I sincerely hope this transaction can be finalised during the first half of the 2023 financial year to allow us the opportunity to integrate these businesses and their employees into our South African Shoprite supermarkets’ operations.
“We have much to do in terms of executing our strategy to grow the business in the years ahead, this is just one of our initiatives and we look forward to reporting on our progress on this and our other plans during 2023,” said Pieter Engelbrecht, Chief Executive Officer Shoprite.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletter with the latest news insights from Africa and the World’s food and agro-industry. SUBSCRIBE HERE
