Shoprite witnessed an increase in share price by almost 5% on Tuesday morning after the company reported strong sales growth for the 52 weeks to 3 July 2022.
Sales climbed to more than R184 billion – almost 10% higher than the 53 weeks in the previous reporting year.
Taking into account the additional week of sales, the group increased sales by almost 12% on a 52-week basis. This is despite the July 2021 civil unrest, which hit 231 of its stores. More than 30 of the affected stores remain shut, nine of which have been permanently closed.
South African supermarkets grew sales by 10.1% to almost R134 billion – contributing 80% of total sales. Sales in other African markets increased by 10.4%. Its LiquorShop business in South Africa saw sales jump by almost 45%. In the previous year, pandemic-related sales bans cost it 144 trading days, compared to the loss of only 48 in the past year. Furniture sales declined by 1.4%.
Shoprite Group also includes Usave, Checkers, House & Home and OK Furniture.
Across the group, prices increased by 3.9% for the year, with a big increase of close to 5% in the second half of the year.
The group added a net 127 stores, bring its total number of stores to 2 476.
Shoprite will release its year-end results on 6 September 2022.
Its shares were trading at R219.14 on Tuesday morning, up 42% from a year ago.
Source: News 24