Shoprite levels playing field by agreeing to drop exclusive lease agreements

SOUTH AFRICA – South African retailer Shoprite has entered into a consent agreement with Competition Commission to immediately stop enforcing exclusivity provisions in its long-term lease agreements with its landlords against small, medium and micro enterprises (SMMEs) and speciality and limited line stores. This was confirmed by the Competition Tribunal of South stating that the agreement stops Shoprite from excluding competition from smaller suppliers who will now have better access to letting space in shopping centres where a Shoprite-owned store is located. Long-term exclusive lease agreements, entered into between property…

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Shoprite names first female Chair Wendy Lucas-Bull, ending Christo Wiese’s reign

SOUTH AFRICA – Shoprite’s long-serving Chairman Christo Wiese will retire as the chair of the retail chain in November after four decades at the helm. Wiese, has been Shoprite’s chairperson since 1979 when his Pep Stores acquired the food retailer, growing it from a small supermarket chain with eight stores to the pan-African food retailer that it is today, reports Fin24. He will step down from his position after the company’s annual general meeting (AGM) scheduled for the 16th of November, but will remain on the board as a non-executive…

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Shoprite exits Kenya as it reports 6.4% rise in full year earnings despite Covid-19

SOUTH AFRICA – South African-based supermarket chain Shoprite has pulled the plug on its operations in Kenya as it continues with its plans to exit non-performing operations out of its South African base due to poor performance. The retail company, which reported that the group’s sales of merchandise rose by 6.4% to a record R156.9 billion (US$9.2bn) for the year ended June 2020 despite the Covid-19 upsets, moves out of Kenya after recently doing the same in Nigeria, Africa’s largest potential market. In the year under review, the company says…

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South African retail giant Shoprite shuts second outlet in Kenya

KENYA – Africa’s largest food retailer, Shoprite Holdings has announced that it will be closing its outlet at the City Mall in Nyali, Mombasa, citing the business as no longer viable on the reduced flow of shoppers. This comes four months after it shut down its Waterfront, Karen outlet in Nairobi rendering 104 workers redundant. With the new closure, 115 workers will be laid off and the retailer has revealed that it has already notified the Kenya Union of Commercial Food and Allied Workers (KUCFAW) of the impending layoffs and…

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Shoprite set to exit the Nigerian Market after 15 years of operations

NIGERIA – South African retailer, Shoprite has announced that it is considering the sale of all of or a majority stake in its Nigerian subsidiary, Retail Supermarkets Nigeria Limited after reviewing its operating model and receiving approaches from various investors. In its trading update for the 52 weeks to end June, Shoprite indicated that Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. “Any further updates will be provided to the market at the appropriate time,” stated the company. This…

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Shoprite Holdings evaluating operations in East Africa

EAST AFRICA – Shoprite Holdings Ltd, Africa’s largest consumer goods retailer, is evaluating its operations in East Africa as part of a wider plan to exit markets that have proven to be unprofitable. The South African-based retail giant which has operations in 14 African countries said in its 2019 annual report that several markets have been underperforming including Mauritius, where it closed its operations last year due to continued non-profitability. According to the Johannesburg Stock Exchange listed retailer, its operations outside South Africa only contribute 20 per cent of the…

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Retail giant Shoprite closes outlet in Kenya laying off 104 employees

KENYA – South African retailer, Shoprite has announced closure of its Waterfront, Karen outlet, citing the business as no longer viable on the reduced flow of shoppers. In relation to this, all 104 employees at the branch have been declared redundant, with their contracts of employment terminated with effect from 20th May 2020. “Endeavour to continue trading at the Waterfront branch is no longer viable,” Shoprite said in a notice to the Kenya Union of Commercial Food and Allied Workers (KUCFW). “It is envisaged that the extent of the redundancy…

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Shoprite reports 2.6% decline in half year earnings despite growth in sales

SOUTH AFRICA – Supermarket chain Shoprite has reported a 7% increase in the sale of merchandise to R81.2 billion (US$5.42 billion) in the six months to December, but its diluted headline earnings per share declined by 2.6 percent to 372.4 cents in the 26 weeks ended December 29 from 382.4 cents a year earlier. The company’s interim earnings before interest, tax, depreciation and amortisation increased by 5.3 percent to R6.8 billion (US$450m), while trading profit on a reported basis fell 3.9 percent to R4 billion (US$264.8m). The seven percent rise…

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Shoprite Group gears towards using 100% reusable and recyclable packaging material by 2025

SOUTH AFRICA – In line with the Shoprite Group’s commitment to ensure that 100 percent of its plastic packaging is reusable and/or recyclable by 2025, the retailer is now using the 4000 tons of plastic returned annually to its distribution centres to produce its 100 percent recycled and recyclable plastic shopping bags. “This is the latest among the growing number of circular economy practices we are putting in place,” said Group Sustainability Manager, Sanjeev Raghubir. While packaging protects and preserves products, the retailer recognises that it is a key driver…

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Shoprite’s half year sales grow by 7% despite dismal performance outside SA

SOUTH AFRICA – Africa’s retail giant Shoprite has reported a 7% growth in the group’s total sales to approximately R81.2bn (US$5.62b) in its half-year financial performance ending December 2019. The growth was driven its South African supermarkets which saw sales up 9.8% for the period to R61.7bn (US$4.29b) unlike its operation in the other African countries. “All three supermarket brands, Shoprite, Checkers and Usave, traded well in a tough market,” the group said. Supermarkets in the rest of Africa saw sales decline 3.1% to R10.8bn (US$751.62m). Shoprite pinned this on…

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