South Africans have been hit this year by rising mortgages and rents, rising fuel prices and runaway food inflation, leaving many with little or no money to cover. their expenses.
However, Shoprite is doing better than its competitors, thanks to its focus on budget-conscious consumers, including more than 11 million South Africans on welfare and others on government COVID-19 subsidies. Moreover, its push into the higher spend market has also helped.
The group’s main segment, Supermarkets South Africa, represented by the economy chains Shoprite and Usave, and the high-end chains Checkers, Checkers Hyper and LiquorShop, increased its sales by 19.9% during the first quarter which ended ended in September, thanks to the increase in the number of customers, the growth in volumes and the increase in the average basket.
Internal retail price inflation reached 8.2%, according to Shoprite.
Shoprite’s African supermarket division, which has ten countries, increased its sales by 18.8% in rand. In constant currency, sales also increased, while sales of the group’s furniture business increased by 5.2%.
Shoprite said the first quarter was accompanied by a number of cost increases, in particular, fuel prices as power company Eskom implements rolling power cuts due to capacity constraints. of production.
At the peak stages of power cuts, when its solar panels and generators cannot keep up, Shoprite estimates its additional monthly diesel costs to be R100 million ($5.79 million) per month.
($1 = R17.2839)