Africa’s largest retailer by revenue, Shoprite said its revenue for six months to December 2016 grew by an impressive 14% from R62.519 billion to R71.297 billion.
The company disclosed that its trading profit was 19.2% higher at R3.907 billion.
Shoprite said its group results were boosted by a very strong performance by our Non-RSA operations which grew turnover by 32.3% to R12.877 billion. At constant currencies this represents growth of
The company also attributed its performance to an increased in marketing activity, strict cost control across the spectrum, improved planning involving all the various disciplines in the business, and the Group’s ability to achieve ongoing supply line efficiencies. These factors combined enabled the Group to increase the trading margin from 5.2% to 5.5% while continuing to provide the best value at highly competitive prices.
The widespread drought and its impact on agricultural production, coupled with the high replacement cost of basic food imports, caused internal inflation to increase from 2.7% a year ago to 7.4%, the highest level in several years. To assist price sensitive consumers and support low prices with value we continued to subsidise those
basic foods most affected by price escalations.
Shoprite said it has so far opened over 147 new stores during the past 12 months and at the end of the reporting period was trading from 2 653 outlets.
Shoprite has over 143,000 employees across Africa. The latest addition to its chains has so far added over 7,144 news jobs to the group.
The company is having a positive business operations in Nigeria, Angola and rest of Africa “proved buoyant despite the oil-price collapse and a consequent lack of foreign currency”.