Shoprite Red and white and in the black
A trading update from Shoprite for the 53 weeks through July 4, with sales up +8.1% to R168bn, and the core Supermarkets business back here in the Beloved C., accounting for more than three-quarters of continuing revenue, growing +9.3%. Reflecting the enthusiastically if chaotically applied prohibition, sales form the stand-alone LiquorShops were up just +4.4%, with a -21.8% decline in first half sales, and growth of +53.6% in the second, with a total of 144 days of closures for the year. Furniture was a big winner for the Group, although it was disproportionately hit in the looting – sales at OK Furniture and House & Home were up almost +25% for the period, to R6.8bn. And in what this year is sadly likely to become a standard of results reporting, 119 stores of Shoprite’s total of 1,189 supermarkets trading under the Shoprite, Usave, Checkers and Checkers Hyper banners, were severely affected by looting and fire damage, as were 35 furniture stores, and 54 LiquorShops. The really big news, though, is that Shoprite will be buying lock, stock and barrel all of Massmart’s non-core food businesses – see the Massmart story down below.
Comment: Very solid results in what we can all agree has been one heck of a year.