Jul 14, 2005
For the 12 months to 3 July 2005, comprising 53 weeks, the Shoprite Group increased turnover by 12,0% to approximately R29,8 billion, compared to the corresponding 12 months of 52 weeks in 2004. If the additional week of the current reporting period is disregarded, turnover growth was 9,5%.
All other comparatives contained in this Trading Statement have been calculated on the basis of a 52-week period.
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 Shoprite brand, the group's core business, benefited from the increased disposal 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 7,7%.
The Checkers brand held it"s 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-RSA stores due to the negative impact of the strong rand. At constant conversion rates, the non-RSA operation grew by 15,5%.
In line with the rest of the industry, growth in the Furniture Division decelerated during the second half of the year but remains satisfactory. 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 above financial information has not been reviewed or reported on by the Shoprite Holdings auditors. The results for the 12 months to June 2005 are expected to be published on 24 August 2005.
Date issued 14 July 2005