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2022-01-28

Shoprite's sales increased by 10% despite riot fall-out

Retailer Shoprite reported solid sales for the past six months, with growth of 10% to R91 billion.


Penelope Mashego | Fin24

Like many retailers across South Africa, the group was impacted by July 2021 looting in KwaZulu-Natal and Gauteng during the six-month period ended 2 January 2022, which hit 231 of its stores.

Despite the impact of the riots, Shoprite opened 57 new stores taking its total number of stores to 2 003, while it closed one OK store.

In the local market, the retailer’s sales grew by 11.3%.

In addition to South Africa, Shoprite has stores in Angola, Mozambique and Zambia. Sales in these countries increased by 8.4%. It did not open new stores in those markets, closing five instead, due to the disposal of its operations in Uganda.

Sales at its furniture segments (House & Home and OK Furniture) declined by 6.5%. The July unrest contributed to the decline in sales.

"At the end of the interim period, nine stores were still closed due to extensive civil unrest damage. It is expected six of these stores will reopen within six months and the remainder during our 2023 financial year," said Shoprite.

The group also owns the MediRite pharmacies and Transpharm brands which - together with Checkers Food Services, OK Franchise and Computicket - saw a 8.9% sales growth.

Shoprite is due to release its interim results in March.

 


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