Shoprite operating profit up 11.7%
JSE-listed retailer reported headline earnings growth of just under 10 per cent, even as revenue grew by 17 per cent. The group signalled retail sale growth, a wider footprint and a leading on-demand grocery delivery service as owing to the performance for the 52 weeks to July 2023. Joining CNBC Africa to discuss this further is Pieter Engelbrecht, CEO, Shoprite.
Tue, 05 Sep 2023 15:51:49 GMT
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AI Generated Summary
- Shoprite's success attributed to distinct customer brands, Shoprite and Checkers
- Market share gains driven by fresh food category and strategic investments
- Company plans to open 340 new stores, invest in digital initiatives for future growth
South Africa's JSE-listed retailer, Shoprite, has reported impressive financial results for the 52 weeks ending July 2023. The company saw headline earnings grow by just under 10 per cent, while revenue increased by 17 per cent. CEO Pieter Engelbrecht attributes this success to the unique strengths of Shoprite and Checkers, the group's distinct customer brands. Market share gains worth $8.1 billion were driven by $2.3 billion from the fresh food category, reflecting a focus on quality and freshness amidst challenges of inconsistent power supply. Engelbrecht highlighted the importance of strategic investments and data-driven decision-making in achieving sustained growth in market share. The company's 1.4 per cent increase in market share for the year underscores the effectiveness of their long-term strategies. Shoprite plans to open 340 new stores, invest in digital initiatives, and expand supply chain capabilities to drive future growth. Despite external challenges such as inflation and diesel price hikes, Shoprite remains committed to delivering value to customers and supporting communities.
