SHOPRITE BOOSTS TURNOVER IN FIRST QUARTER
31 October 2011
For the first quarter ended September 2011, the Shoprite Group increased total turnover by 10,8%. With total internal inflation at 3,8% this represents real growth of 7%. This result compares with turnover growth of 9,7% in the corresponding three months in 2010 when total internal inflation was -1,5%.
The Group’s core business, Supermarkets RSA, also grew turnover by 10,8% with internal food inflation averaging 4,0% compared to -1,8% for the corresponding three months in 2010. Its internal level of food inflation remains substantially below the official food inflation index of 7,7% for this period.
Shoprite CEO Whitey Basson said although market share information for the food retailing sector was no longer available, management was nevertheless confident that, based on the sector information it did have at its disposal, the Group continued to gain market share relative to its main competitors. “Our confidence is supported by the increase in basket size ahead of internal inflation and the positive growth in customer numbers.”
He said the same pressures that affected South African consumers were also evident in the rest of Africa. In constant currencies the turnover growth of the Group’s African operation was virtually the same as in the corresponding period namely 13,9% compared to 13,5%. Due to the weakening of the rand against major African currencies, the increase in rand terms was 12,7% as against 2,1% in 2010.
Although the highly competitive environment in which the furniture division traded, remained virtually unchanged, turnover grew 12,8% compared to the three months in 2010 immediately following on the World Cup. Other divisions in the Group which include OK Franchise, Medirite and Computicket, grew turnover by 7%.
Basson said sales had picked up in September and October, and management was confident that this trend would continue into the December festive season.