South African supermarket chain Shoprite’s turnover has improved by 14,1% to R15,2-billion for the six months to January 2 2005, comprising 27 weeks, compared with the corresponding six months or 26 weeks in 2003, the group said on Monday.
If the additional week of the current reporting period is disregarded, turnover growth was 10,3%, it said.
Shoprite said the six months to January 2 represent a successful trading period, with all the group’s retail divisions reporting good growth in turnover, despite internal food deflation of between 0,3% and 1,3% in the different brands.
“Management is satisfied with this achievement and in particular with the improvement in non-food sales,” it said.
The Checkers brand continued to reflect the value of its new positioning by its customer support, with turnover growth of 7,4% on a like-for-like basis. Three new stores were opened during the period under review.
Shoprite, harder hit than Checkers by internal food deflation given its mass-market customer profile and product mix, grew turnover on a like-for-like basis by 8,7% and overall by 11,9%. Eight new stores were opened during the period.
The group said the roll-out of Usave outlets continued at a pace to keep up with support for the brand, and a further 17 new stores were opened during the period under review, to bring the total to 74.
Good growth was again experienced in the furniture division in line with the rest of the industry, and turnover increased by 15,9% on a like-for-like basis and by 18,1% overall. This was achieved in a highly competitive market, buoyed by strong consumer demand and lower prices for imported goods given the strengthening of the rand.
The group’s non-South African operations performed in line with expectations. Sales increased by 20,1% at constant conversion rates. If currency fluctuations are taken into account, this turnover growth translated into 12,4% in rand terms.
In mid-December, the group opened a hyper store in a modern shopping centre in Mumbai, India. Turnover has increased consistently and the group management is excited about the enormous potential for growth in India, it said.
Shoprite’s interim financial results will be released on or near March 1. — I-Net Bridge