Shoprite Group, Africa’s largest food retailer, announced a 12% increase in total merchandise sales for the 52 weeks ending June 30, 2024. The sales reached approximately R240.7 billion, inclusive of the Ghana hyperinflation impact. Excluding hyperinflation, sales were R240.8 billion, still reflecting a 12% growth. This performance is attributed to various strategic expansions and operational improvements.
Store Expansion
The Group added a net 292 stores during the year, bringing the total to 3,639 stores from continuing operations. This includes 73 new OK Franchise stores.
| Segment | Sales FY2023 (Rbn) | Sales Growth (%) | Sales FY2024 (Rbn) |
|---|---|---|---|
| Total Group | 215.0 | 12.0 | 240.8 |
| Supermarkets RSA | 173.6 | 12.3 | 194.8 |
| Supermarkets Non-RSA | 19.6 | 6.1 | 20.8 |
| Furniture | 7.1 | 2.3 | 7.3 |
| Other Operating Segments | 14.6 | 21.1 | 17.7 |
Segment Performance
Supermarkets RSA
Supermarkets RSA, Shoprite’s core business, achieved a 12.3% sales growth, contributing 81% to Group sales. This is compared to a 17.8% increase in the prior year.
- Like-for-Like Sales Growth: 6.3%
- Internal Selling Price Inflation: Averaged 5.8% for the period, ending at 3.0% in June 2024.
- Online Sales Growth: Checkers Sixty60 platform saw a 58.1% increase.
- Net New Stores: 201, bringing the total to 2,322.
Supermarkets Non-RSA
Non-RSA supermarkets’ sales increased by 6.1%, contributing 8.6% to Group sales.
- Net New Stores: 15, totaling 266 stores across nine countries.
Furniture
The Furniture segment, contributing 3% to Group sales, reported a 2.3% increase.
- Like-for-Like Sales Growth: 2.0%
- Net Store Reduction: 4, ending with 430 stores.
Other Operating Segments
This segment, including OK Franchise, Transpharm, Medirite, Red Star Wholesale Catering Services, and Computicket, grew by 21.1%.
- Contribution to Group Sales: 7.4%
- OK Franchise Sales Growth: 23.8%
- Net New Stores: 73, totaling 608.
Detailed Segment Analysis
Supermarkets RSA
- Checkers and Checkers Hyper: Sales grew by 12.3%.
- Shoprite and Usave: Reported a 10.7% increase.
- LiquorShop: Sales surged by 20%.
- New Store Formats: Added 33 Petshop Science stores, 14 Checkers Outdoor stores, 13 UNIQ clothing stores, and 3 Little Me stores.
Supermarkets Non-RSA
- Sales Increase: 6.1% in rand terms.
- Countries of Operation: Nine, with a total of 266 stores.
Furniture Segment
- Sales Increase: 2.3%
- Net Store Reduction: Ended with 430 stores.
Other Operating Segments
- OK Franchise: Strong growth with a 23.8% increase in sales.
- New Stores: Seven standalone Medirite Plus drug stores, totaling 13, plus 126 in-store pharmacies.