South Africa’s biggest grocer, Shoprite Holdings, earned US$10.75 billion in the year ending in July as its core South African supermarkets business grew sales by 10.1% despite the impact of civil unrest last year that damaged its 231 stores in the country, APA learnt on Tuesday.
According to Shoprite, the earnings were a 10.3% increase in annual profit as shoppers flocked to discount store chains for everything from groceries to household supplies in the face of the country’s higher inflation of 7.8% in July 2022.
Shoprite’s more affluent customers, who largely ignored the impact of inflation, also boosted profit and sales at its upmarket Checkers supermarket chain which also offered on-demand grocery delivery, the supermarket said.
Shoprite has more than 2,900 stores in 11 African countries.
The retailer had more shoppers at its stores in the financial year ending in July, with visits up by 5% and average basket spend increased by 4.9%, it said.
Internal selling price inflation was kept below the country’s inflation, measuring at 3.9% for the group, it added.
South Africa’s annual inflation rate reachedover a 13-year high of 7.8% in July of 2022 from 7.4% in June, above market expectations of 7.7% —and the upper limit of the South African Reserve Bank’s target range of 3%-6%, records show.
NM/as/APA