If 2024 taught us anything, it’s that the South African FMCG corporate retail sector knows how to keep moving forward, even when the playing field keeps shifting. Our latest Corporate Retail Comparative Report provides an in-depth analysis of the performance metrics of South Africa’s six listed FMCG retailers: Shoprite Holdings, The SPAR Group, Pick n Pay Stores, Woolworths Holdings, Clicks Group, and Dis-Chem Pharmacies. This edition is an update based on indicators published by the end of 2024.
Inflation Eases, Volumes Rise
Over the second half of 2024, food inflation moderated, following +10.8% inflation for 2023 and +9.2% in 2022. This moderation supported underlying volume growth performance, with Shoprite Supermarkets RSA joining Clicks and Boxer in the black, while Woolworths Food and SPAR Retail Grocery improved but remained in the red. But they didn’t sit back and relax. Instead, they juggled gross margins with aggressive price investments to hold onto – or snatch up – market share in a hyper-competitive landscape.
Shoprite Leads The Pack
When it comes to standout performances, Shoprite Group continues to wear the crown recording the highest turnover among the six retailers at R241 billion and achieving an impressive +12% growth for FY2024. Checkers outdid Woolworths Food for the fifth consecutive year, thanks to strategic store expansions and the continued success of the Sixty60 delivery service.
The Rise of the Discounters
While Shoprite basks in the spotlight, Boxer has been quietly stealing scenes in the background. For the second year running, Boxer has shown outstanding growth, achieving the highest turnover growth among the grocery trading brands (i.e. Shoprite, Checkers, Usave, SPAR retail grocery, PnP, and Woolworths Food) – a solid report card for its first update since its debut on the JSE in November 2024. Boxer is well positioned for expansion, with a goal of opening 60 to 70 new stores annually, effectively doubling its footprint over the next six to seven years.
It’s not only Boxer making moves in the discounter realm. Shoprite plans to double its Usave stores to 1,000 over the next five years, while SPAR is breathing new life into its SaveMor format, currently sitting at 97 stores. The message is clear: discounters are showing strong momentum that could continue.
Growth Beyond Borders (and Grocery Aisles)
FMCG corporate retailers have significantly expanded their presence across the continent. Over the past five years, they have opened, on average, one store per day in South Africa and Africa, resulting in +24.2% growth in store footprint, for a total that now exceeds 10,000 outlets. For the grocery retailers, this expansion includes growth in non-grocery channels (i.e. pet, baby, clothing) to diversify revenue streams and enhance profitability.
Big Bets for the Future
What’s next for these retail titans? Big decisions and even bigger investments. A combined R15.7 billion in capital expenditure (CAPEX) is planned for FY2025. These investments will focus on store expansions, maintenance, IT infrastructure, and strategic growth initiatives, bringing the industry’s 330,000 employees along on a growth journey that reflects its commitment to sustainable development.
As Carey Leighton, our resident economist and retail analyst, puts it: “Leaders are making big decisions and executing strategies for growth, backed by significant CAPEX – shaping not just their businesses but the future of the FMCG industry.”
And if the past year is any indication, that future looks anything but boring.