SHOPRITE FY turnover beats expectations

Planet Retail 19 July 2007 

South African retailer Shoprite has reported a 16.2% rise in full year turnover to ZAR38.9 billion (USD5.4 billion) beating expectations. For operations outside South Africa, turnover rose by 29.1%. Shoprite said the strongest contributions came from Zambia, Mozambique and Angola, while Nigeria had also started to make a meaningful contribution. Shoprite CEO Whitey Basson said the group's African operations were generally doing well and that he was happy with turnover. "In Nigeria we are looking at expanding further and are happy with that country," he said. Apart from expanding in Nigeria, Mr Basson said the firm was looking at the Democratic Republic of Congo but that it was early days yet.

Shoprite said its core business - the Shoprite supermarket banner - increased turnover by 14.2%, despite substantial sales losses during extended industrial action in the first half of the financial year. "The Checkers hypermarket/superstore banner, less affected by this action, showed turnover growth of 15% and growth in existing stores of 10.1%," the retailer said in a statement. Its discount chain - Usave - grew strongly off a relatively low base, achieving turnover growth of 35.2% while increasing sales in existing stores by 21%. Shoprite said its furniture unit continued to operate for most of the reporting period in an almost deflationary environment, achieving turnover growth of 14.1%.

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