Jan 17, 2014
For the six months ending December 2013, the Shoprite Group grew turnover by 9.6% to about R51.0 billion.
The South African supermarket operation increased sales by 7.6%. Internal food inflation during this period averaged just 3.8%, compared to the estimated official food inflation figure of 5.6%.
Christmas trading for the month of December was impacted by the unforeseen closure of all RSA stores in the Group on 15 December as a mark of respect following the passing of former President Nelson Mandela.
Shoprite CEO Whitey Basson said management believed this was the correct way to pay our respects to Mr Mandela, albeit at a short term financial cost to the Group. “We felt that by not opening our stores we were also recognising the huge debt we owed Mr Mandela who, by creating a truly democratic South Africa, had created a climate for dynamic growth which took Shoprite way beyond the borders of South Africa.”
Basson said management estimated that should these stores have traded on 15 December, sales of some R 260 million would have been generated, impacting turnover growth for the period by 0.7%.
Shoprite’s supermarkets elsewhere in Africa achieved sales growth of 27.5% and of 14.9% in constant currencies.
The Group’s furniture division grew sales in a highly competitive environment by 10.6% for the six-month period.
The financial results for the review period will be published on Tuesday, 25 February 2014.