Shoprite reported full-year sales growth of 9.3% in its core South African business, despite the extended closure of its liquor shop business due to coronavirus restrictions.
The supermarket RSA division reported sales of R133.9 billion (€7.88 billion) in the year to 4 July. The group said this was thanks to the “joint efforts” of its Shoprite and USave businesses, with sales increasing by 8.8%, while sales at Checkers and Checkers His Hyper businesses rose by 10.9%.
The company noted that its liquor shop business was closed for 144 days during the financial year as a result of coronavirus countermeasures.
“This growth is a testament to our loyal customers and the relentless efforts of our team to ensure we deliver unparalleled value in-store and digitally throughout the year,” said Peter Engelbrecht, Chief Executive Officer of Shoprite. he commented.
Outside South Africa
Outside South Africa, the group has divested its supermarket business in Nigeria, closed its operations in Kenya (3 stores) and scrapped operations in Uganda (5 stores) and Madagascar (10 stores) as part of its streamlining operations. Classified.
Engelbrecht added: “Although the region remains challenging, profitability has improved as a result of a review of capital allocation and various domestic initiatives.”
Elsewhere, sales in Shoprite's furniture division rose 24.6% for the year, while its “other” business unit, which includes Checkers Food Service and Computiquet, reported a 10% increase in sales.
Overall, group sales increased by 8.1% to R168 billion and operating profit increased by 24.9% to R10.3 billion.
The company recently announced the launch of ShopriteX, a digital technology hub. This led to the creation of the Xtra Savings Rewards loyalty program and Checkers Sixty60, Checkers' 60-minute grocery delivery service.
“Consumer response on both counts has been unparalleled, with more than 20 million members enrolled in the Xtra Savings Rewards program and Checkers Sixty60 ranked #1 grocery store in the country with over 1.5 million app downloads. “It's become a product app,” Engelbrecht said.
civil unrest
The violence in Gauteng and KwaZulu-Natal in July occurred a week after the end of the group's financial year, and Mr Engelbrecht criticized the efforts of those involved in rebuilding the business and ensuring food supplies for local communities. praised.
“We have begun the process of rebuilding our operations in KwaZulu-Natal and central Gauteng,” he said. “Similarly, we have used his Usave mobile trucks and container stores to support customers in areas where there is literally no infrastructure left to collect.
“At Shoprite, we can look back with pride on the pivotal role we played in rebuilding South Africa, and we look forward to ending 2022 very different from how we started. .”
Massmart announced in August that it had sold non-core food assets to rival Shoprite Holdings in a deal worth R1.36 billion (€76 million).
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