Shoprite's annual revenue exceeds R250bn, creates thousands of jobs

Analysts say giant retailer has outperformed other retailers in terms of growth

- EDWARD WEST

SHOPRITE Holdings’ annual sales surpassed R250 billion for the first time and it created 8 723 jobs after opening a net 281 stores in the year to June 29.

South Africa’s biggest grocery store group, with 2 863 corporate-owned and managed stores, said Tuesday that revenue increased by 8.6% to R256.7bn for the year. Group merchandise sales increased by 8.9% to R252.7bn.

Trading profit from continuing operations increased by 16.6% to R15bn. Customer visits increased by 4.4%, and average basket spend increased by 4.8%.

The core division, Supermarkets RSA’ merchandise sales increased by 9.5% to R213.5 bn. Diluted headline earnings per share (DHEPS) increased by 15.8% to 1,367.2 cents. The full-year dividend increased by 9.7% to 781 cents.

Gryphon Asset Management portfolio manager Kasparus Treurnicht said Shoprite had again outperformed the other large retailers in South Africa in terms of growth. However, of interest, it had not managed to surpass the growth rates of Woolworths Holdings’ Foods division, he said.

He said the fact that Shoprite had managed to keep sell inflation at below 2% was “very good” and indicated that Shoprite remained internally focused, working hard on extracting efficiencies and “running a tight ship when it comes to costs.”