Jul 21, 2004
During the year to 30 June 2004, the Shoprite Group increased turnover on the previous year by 7.3% to approximately R26,4 billion. Sales figures were negatively affected by the nationwide strike in October and November 2003, following the implementation of the new Sectoral Wage Determination Act, as well as the strengthening of the Rand against other African currencies.
Despite these constraints, satisfactory growth was achieved by the Checkers brand with a like-for-like increase in turnover for the 12 months to 8,0%. Total sales growth of 7.3% in Shoprite stores was negatively influenced by the low food inflation. Stores closed during the strike were mostly Shoprite outlets.
Due to the prevailing economic conditions affecting the Group"s target market, the increase of 4.1% in the number of customers served in the two major chains was not matched by basket growth, which on average was 2.9% higher.
The non-RSA operations performed well with sales growth of 20.7% on a like-for-like basis and 26.7% on total sales at constant conversion rates. Despite the strength of the local currency, sales in Rand terms still showed positive growth of 2.7%.
The new U-Save format is now well established with a total of 59 stores currently trading, 16 of these outside South Africa. Good growth of 24.5% (like-for-like 20.4%) was recorded by the Furniture Division despite the drop in selling prices in most categories prompted by a stronger Rand.
The above financial information has not been reviewed or reported on by Shoprite’s auditors. Shareholders are advised to exercise caution in dealing with the Company’s shares until the results for the financial year to 30 June 2004 are published on 24 August 2004.