South African supermarket chain Shoprite has reported a 13.2% increase in the group’s consolidated sales for the first quarter (Q1), which ended in September 2023.
Shoprite said that the group opened 81 stores on a net basis in Q1. For the financial year (FY) 2024, the company aims to open 314 new stores.
Sales in the company’s core Supermarkets Republic of South Africa (RSA) segment, were up by 13.3%. This segment mainly comprises Shoprite, Usave, Checkers, Checkers Hyper and LiquorShop.
The group’s market share for 52 weeks ending September 2023 rose 124 basis points.
The Supermarket RSA segment further recorded about 8.3% internal selling price inflation.
A total of 23 stores, including six Shoprite, five Usave, two Checkers, two UNIQ by Checkers, 18 LiquorShop, two Checkers Outdoor and eight Petshop Science, were opened under Shoprite Supermarkets RSA during the quarter.
The company is on track to open 195 stores in fiscal year (FY) 2024.
In the Supermarkets Non-RSA operating segment, which trades from nine countries outside of South Africa, the group recorded a 9.7% increase in sales in reporting currency and double digits in constant currency.
During the reported quarter, the company opened one Shoprite and one LiquorShop in Eswatini under the non-RSA segment. The target for FY24 is to open ten stores.
Sales growth in the group’s Furniture and other operating segments was up 0.5% and 22.2%, respectively.
Under the other operating segments, the group registered 22.0% sales growth from the OK Franchise division, which opened 37 new stores in the first quarter of 2024. OK Franchise ended the quarter with a total of 572 stores.
Shoprite is targeting to open an additional 107 stores in the other operating segment during the remaining 2024 financial year.
For the full FY2023, Shoprite reported a 16.9% increase in sales to R215bn ($11.2bn).
