You are currently viewing our desktop site, do you want to visit our Mobile web app instead?
Complete our online survey and
get 10% discount on our
Insider Gold annual subscription.
 Registered users can save articles to their personal articles list. Login here or sign up here

Shares in Shoprite rise on sales growth

Shops outside SA continued to take a knock though.

Shoprite shares rose almost 5% on Wednesday after it reported robust sales growth driven by its core South African supermarkets business, even as a tough economy weighs on consumer finances.

The retailer, which also runs Checkers and Usave chains in its home market, has managed to shrug off high levels of unemployment, rising living costs and slow growth in South Africa that have hurt many consumer-focused firms.

It said it had grown its total sale of merchandise by 7% to R81.2 billion in the six months to December 29, with its South African supermarkets business growing sales by 9.8%.

“All three supermarket brands… traded well in a tough market,” it said in an operational update, adding that its liquor business had also grown sales by 20.5%.

Its shops outside of South Africa however continued to be hurt by currency devaluations and volatility in markets like Angola, Zambia and Nigeria, and as a result its non-South African business reported a 3.1% decline in sales.

Sales in its furniture division also dropped by 2.7% following store closures and, it said, scheduled power cuts by South Africa‘s ailing power utility Eskom, which is struggling to keep the lights on amid severe financial woes.

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   0

You must be signed in to comment.

SIGN IN SIGN UP

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: