Shoprite records growth in sales

Shoprite PixAfrica’s largest supermarket retailer Shoprite says its September quarter sales grew 6.4 per cent.

But this is a sharp slowdown from the 15.7 per cent achieved in the matching quarter in 2016.

The three months to end-September report said the turnover was buoyed by South African sales, but with weaker commodity prices weighing on in its business in the rest of Africa.

The company grew its South Africa sales 8.1 per cent in the three months to end-September as it kept price increases low amid weak economic growth, it said on Monday.

Shoprite, which has stores in 15 African countries including Ghana, said it slashed the prices of staples such as maize meal and potatoes in its South African home market, reducing the company’s internal inflation to 0.9 per cent across all products, compared with 7.2 per cent a year ago.

“Stripping out the effect of inflation, the real sales growth surpassed the prior year’s growth in the same quarter,” the company said in a statement.

Besides South Africa and Ghana, Shoprite has stores in Nigeria, Zambia, Angola, Uganda, Mozambique, Namibia, Swaziland, Lesotho, Malawi, Madagascar, Mauritius, DRC and Botswana.

Its 35 million customers have played a large role in the company becoming Africa’s largest supermarket retailer.

But sales growth in Angola slowed “significantly” from an increase of 110 per cent the previous year, the company said without giving more detail.

Shoprite’s supermarkets outside South Africa reported a 1.8 per cent drop in turnover mainly due to the impact of lower commodity prices and weaker currencies in Angola, Nigeria and Zambia, the company said.

Since the first Shoprite flagship store in Accra in 2007, the company has opened another 4 stores across the capital, employing more than 600 people.

“We’re also proud to support Ghanaian business. In our commitment to supporting local enterprise, Shoprite has built relationships with leading Ghanaian suppliers, small businesses and farmers, securing a wide assortment of local brands. We’re driving the “Proudly Ghanaian” initiative,” it said.

Through its community network, Shoprite has also supported various Ghanaian communities, especially those that focus on health, orphanages, education and skills development.

 

 

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