South African supermarket chain Shoprite’s first-quarter sales rise 10.4%

JOHANNESBURG, Oct 29 (Reuters) – South Africa’s biggest supermarket group Shoprite said on Tuesday its first-quarter sales rose 10.4%, buoyed by new store openings and growth across all its operating segments.

The retailer’s shares were up 5.86% at 0811 GMT.

Shoprite said in an operational update that its internal selling inflation eased to 2.6% during August and September, from 3% in July.

South African consumers are starting to feel relief after inflation cooled for a fourth consecutive month in September, to 3.8% from 4.4% in August, its lowest level in more than three years.

Shoprite opened 68 stores across the group on a net basis during its first quarter to end-September. The majority of these, a net 53 stores, were opened in its core South African supermarkets segment.

Sales at the group’s South African business, which includes Usave, Checkers, LiquorShop and UNIQ clothing, grew by 11.4% in the quarter.

Its non-South African segment, trading in nine countries across Africa, reported sales growth of 3.2% in rand terms and 19.7% in constant currency. (Reporting by Sfundo Parakozov; Editing by Kirsten Donovan)

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