Shoprite recorded solid sales growth in the six months to December despite easing food inflation and continued pressure on household budgets. The country’s largest food retailer generated R136.8bn in sales from continuing operations, a year-on-year increase of 7.2%, equivalent to average daily turnover of about R752m over the period.
The bulk of this performance came from Supermarkets RSA, the group’s main operating division, which contributes more than 84% of total revenue. Sales in this segment rose by 7.1%, adding R7.7bn over six months. Management attributed the outcome to higher volumes and store expansion rather than price increases, as the group prioritised affordability in a weak consumer environment.
Food inflation averaged 4.7% over the period, as reported by Statistics South Africa, but Shoprite’s own selling price inflation was limited to 0.7%. During the peak festive trading months of November and December, prices in parts of the group declined. This resulted in like-for-like sales growth of 1.9%, indicating that turnover gains were driven mainly by increased unit sales and new outlets rather than pricing.
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Market data from NielsenIQ shows that Shoprite expanded at more than twice the pace of the broader retail sector over the period, underscoring market share gains despite subdued consumer demand. Performance varied across formats. Shoprite and Usave experienced slower growth alongside price deflation, while Checkers and Checkers Hyper achieved stronger growth supported by modest price increases. The Sixty60 online delivery platform recorded a 34.6% increase in sales, while newer concepts such as Petshop Science and Uniq Clothing by Checkers delivered high growth from a small base.
By limiting price increases to well below national food inflation, Shoprite absorbed a portion of rising costs rather than passing them on to consumers. The difference between national food inflation and the group’s own pricing translated into estimated savings of about R4.6bn for customers over the six months, or roughly R25m a day.
Despite operating in a low-inflation and low-growth environment, Shoprite expects earnings to improve. Headline earnings per share from continuing operations are forecast to rise by between 5.2% and 10.2%, supported by higher volumes, continued market share gains and ongoing store rollout rather than margin expansion through price increases. The group is due to publish its full interim results in March.