Retail group Shoprite Group increased turnover by 12% to about R29,8-billion for the 12 months to July 3 this year, comprising 53 weeks.
The group said that if the additional week of the current reporting period is disregarded, turnover growth was 9,5%. The previous 12 months was calculated over 52 weeks.
“Despite the fact that the group internal food inflation ranged from deflation to 0,5%, management is satisfied with the turnover growth and the increase in market share,” the group said on Thursday.
The Shoprite brand, the group’s core business, benefited from the increased disposable income available in its target market. Total sales, supported by a 5,6% increase in customer numbers, grew by 10,8%, while turnover in existing stores rose by 7,7%.
“The Checkers brand held its own in a fiercely contested sector despite a large number of opposition stores being opened in the higher LSM sector during the reporting period. Turnover in existing stores grew by 6,1% and total turnover by 7,4%. Six new stores were opened while one Hyper store was closed.
“Group turnover was unfavourably affected by the performance of the 93 non-[South African] stores due to the negative impact of the strong rand. At constant conversion rates, the non-[South African] operation grew by 15,5%,” the group stated.
In line with the rest of the industry, growth in the furniture division had decelerated during the second half of the year but remained satisfactory, it added.
Turnover in existing stores increased by 13,1% and by 15,6% overall.
“The market in especially white and brown goods continues to be highly competitive,” the group said. — I-Net Bridge