Retail group Shoprite spent R560-million over the six months ended January 2023 on diesel to operate generators at its local supermarkets so they could trade during loadshedding stages five and six.
The Shoprite group announced this week that it increased its total merchandise sales by 17% to R106.3-billion during the half-year.
Shoprite’s South African supermarkets contributed 80.1% to its sales and achieved sales growth of 17.5% during the half year ended 1 January 2023 compared with the half year ended January 2, 2022.
“The growth in sales reflects a record Black Friday and festive season, underpinning 46 months of uninterrupted market share gains,” Shoprite said.
The group added that its internal selling price inflation for the half-year increased by 9.4%, reflecting Shoprite’s product mix exposure to commodities while selling price inflation was notably higher.
Shoprite said excluding the stores it acquired from Massmart and social unrest store closures, and re-openings, South African supermarkets grew by a net of 191 stores in 2022 to 1 953.
During the half year, Shoprite’s supermarkets outside South Africa increased their rand-based sales by 17.5%, and these stores contributed 9.4% to the group’s sales. Shoprite said it closed its three stores in the Democratic Republic of Congo last year and exited the country.
International supermarkets declined by a net of five to 227 stores over the last year.
The group said it received an insurance claim relating to a loss of profits of about R245-million during the half year.
However, Shoprite said that the receipt would be offset by the R90-million in increased insurance costs during this period due to the group’s decision to take additional insurance cover above that offered by the South African Special Risk Insurance Association.
Shoprite said it had integrated the stores and businesses it acquired from Massmart into its South African supermarket operations and rebranded them. Eighty-two of the former Massmart stores are now Shoprite and Shoprite Liquor shops.
The Massmart acquisition was effective from January 9.
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