Shoprite Group's Soaring Success: Reports R240 Billion in Sales & Massive Checkers Sixty60 Growth

In a striking revelation of retail resilience and innovation, the Shoprite Group, South Africa’s largest supermarket retailer, has disclosed an impressive surge in its total sale of merchandise. The fiscal report ending on June 30, 2024, details a revenue hike of 12% to about R240.7 billion from continuing operations, excluding hyperinflation factors, marking a significant stride in the retail landscape.

This increase comes off the back of a previously strong year where sales had climbed by 17.8%. Notably, the retailer's hulking contribution to the Group’s sales stood at 81% from its South African businesses, among which, Checkers and Checkers Hyper saw a promising growth of 12.3%. Nonetheless, it was the Checkers Sixty60 online delivery service that stole the show with a staggering 58.1% jump in sales, indicating a robust shift toward digital consumer platforms in the retail sphere.

The sales crescendo resonated across other brands under the group's umbrella. Both Shoprite and Usave reported an increase of 10.7%, with Checkers LiquorShop outperforming by a wide margin, posting a 20% rise. A contributing factor to this sweeping success is the aggressive expansion strategy the Group has employed. In the reported period, Shoprite broadened its physical footprint with 201 new stores, totaling 2,322 stores. Breakdown of these additions includes 20 Shoprite stores, 22 Usave, 25 Checkers, and a whopping 71 LiquorShop stores.

Shoprite also made marked advancements in niche market segments through Petshop Science, Checkers Outdoor, UNIQ clothing by Checkers, and Little Me – all experiencing growth and store number increases. Significantly, the Petshop Science stores climbed to 86 with 33 new additions, underscoring the Group's potential in specialized retailing.

While the focus is often on the South African market, the Supermarkets outside SA sector illustrated an upward trajectory with a 6.1% increase, contributing 8.6% to the Group sales, and the addition of 15 new out-of-country stores.

Furthermore, the Group’s furniture division, representing 3% of total sales, modestly increased sales by 2.3%, albeit with a minor reduction in the store base. The other operating segments, which include OK Franchise, Transpharm, Medirite, Red Star Wholesale Catering Services, and Computicket, showcased substantial growth with a 21.1% uplift in sales.

The OK Franchise, in particular, stood out with a 23.8% sales growth and an expanded roster of 73 new stores. Contemporaneously, Shoprite seized the pharmaceutical market with seven new Medirite Plus standalone drug stores, expanding beyond the 126 in-store Medirite pharmacies, thus encapsulating Shoprite's omnichannel retail inroads.

These staggering retail figures are a testament to Shoprite Group's adaptive strategies, focus on customer-centric offerings, and shrewd expansions, setting an exemplary blueprint for the future of retail in South Africa and beyond.