Shoprite Holdings inflation-beating 13.9% increase in merchandise sales to about R121.1 billion in the six month to December 31 brought to 58 weeks the number of uninterrupted monthly market share gains in South Africa, the group said yesterday.
Approximate sales from continuing operations were 13.2% higher in the first quarter of 2023, compared with the same period a year before, and 14.6% up in the second quarter, which is traditionally stronger as it falls over the Christmas trading period.
The share price was trading 2.47% higher at R270.03 yesterday afternoon, but the share price has increased steadily by more than 48% over three years.
By segment, Supermarkets RSA sales of R97.5bn was up 14.6%, 13.3% in the first quarter and 15.8% in the second quarter.
Supermarkets Non-RSA sales of about R10.6bn increased by 6.2% in the first half, 9.7% in the first quarter and 3.3% in the second quarter.
Furniture segment sales of R4bn had increased only 1.7% in the six months, 0.5% in the first quarter and 2.5% in the second quarter.
Other operating segment sales of about R9bn was up 23.1% in the first half, 22.2% in the first quarter and 23.9% in the second quarter. This segment comprises the OK Franchise, Transpharm, Medirite Pharmacies, Red Star Wholesale Catering Services and Computicket.
The group’s core business Supermarkets RSA made up 80.5% of group sales and its sales were up 6.3% on a like-for-like basis. In the first half to January 1, 2023, its sales had increased by 17.5% on the prior period.
Shoprite directors said a sustained high level of execution and continued customer momentum, together with record Black Friday and festive season trade, had extended the period of uninterrupted market share gains achieved by the core South African supermarket brands to 58 months.
“Our commitment and investment into price leadership in support of our customers resulted in our Shoprite and Checkers Xtra Savings rewards programme customers saving R8.4bn over the period,” they said.
Internal selling price inflation measured 7.7% for the period.
Checkers and Checkers Hyper reported sales growth of 13.7% with Checkers Sixty60 online sales increasing by 63.1%.
Shoprite and Usave sales grew by 13.1%. LiquorShop sales increased by 25.2%.
As was the case during the second half of the 2023 financial year, the period's growth was positively impacted by the inclusion of 94 stores acquired from Massmart Holdings.
Massmart’s stores were integrated into group operations as follows: Shoprite (51 stores), Usave (one store) and Shoprite LiquorShop (42 stores).
Adjusting for this, Supermarkets RSA segment sales increased by 11.2%.
Supermarkets RSA, inclusive of the stores acquired from Massmart, added a net 285 stores during the past 12 months, to total 2 237 stores.
In constant currency, Supermarkets Non-RSA increased sales 20%. The segment's store base increased by nine stores over the past 12 months to 258 stores in nine countries.
The furniture segment, made up of OK Furniture and House & Home, contributed 3.3% to group sales. The segment's store base remained unchanged with 432 stores.
The Other Operating Segments reported sales growth of 23.1% - the segment made up 7.4% of group sales.
The group's sales to its OK Franchise operation increased 25%. The OK Franchise store base increased by 70 stores net over the 12 months to end the period with 605 stores.
During the corresponding period last year, non-recurring income of R244m was received from a loss of profit insurance claim.
Load-shedding related power outages resulted in a R500m diesel expense to operate generators. Finance charges increased as a result of the increases in the South African repo rate.
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