Shoprite reports increase in turnover

South African food retailer, ShopRite, recently announced an impressive 14% increase in total turnover, accompanied by a 15.5% growth in group diluted headline earnings per share to 460 cents. The company's board also declared an interim dividend of 180 cents, marking a 15.4% increase year-on-year. The new CEO of ShopRite, Pieter Engelbrecht, joined CNBC Africa to discuss these exceptional results and shed light on the strategies that propelled the company's success. Engelbrecht expressed his elation over the outstanding performance, attributing ShopRite's success to their proactive approach in a challenging economic environment. Despite early signs of a tough market, ShopRite swiftly adapted its promotional programs and introduced new initiatives, such as a car competition, to drive customer engagement. This strategic maneuver led to a significant increase of 6.3% in customer transactions, translating to over 500 million in additional sales. The focus on value creation through the introduction of 500 private labels further solidified ShopRite's position as a consumer-centric retailer. The discussion also touched on the impact of internal inflation, which surged to 7.4% due to prevailing drought conditions. However, with the recent influx of favorable weather, Engelbrecht expressed optimism about a potential decline in food inflation in the coming months. He reassured consumers that ShopRite is committed to cost control measures, with 78 food and beach items currently priced lower than the previous year, ensuring that the benefits of reduced inflation are passed on to customers. In light of the recent termination of the proposed Steinhoff-ShopRite merger deal, Engelbrecht acknowledged the criticisms from shareholders regarding the deal structure. While he refrained from speculating on the deal's revival, he hinted at exploring individual growth opportunities that emerged during the due diligence process. These opportunities could potentially enhance the group's performance in the future, whether through separate endeavors or a revised collaboration. Reflecting on his first month as CEO, Engelbrecht expressed enthusiasm about the journey ahead, emphasizing the vast potential he sees within ShopRite and the management team. He highlighted the exciting prospects for innovation and growth within the company, underscoring his conviction in ShopRite's enduring success. As ShopRite continues its trajectory of stellar financial performance and strategic agility, under the leadership of Pieter Engelbrecht, the company remains poised for further growth and resilience in a dynamic market landscape.