Supermarket chain Boxer Retail has stepped up its store expansion with 19 new outlets in the first 20 weeks of its financial year as it positioned itself for stronger revenue in the second half.
The soft discount supermarket chain opened six superstores and 13 liquor stores. This development comes as its struggling sister retailer Pick n Pay hinted at the retrenchment of over 20 000 employees across the country in an effort to bring it back to its former glory.
Boxer revealed that this performance remains in line with meeting its full-year store rollout target of 25 superstores and 35 liquor stores.
Optimism on turnover growth
The retailer said turnover growth is expected to accelerate in the latter part of the financial year, supported by the growing contribution from the new stores and an anticipated increase in selling price inflation.
For the 20 weeks ended July 16, turnover increased by 7.2%, slower than the 10.9% turnover growth reported in the second half of its 2026 financial year.
Like-for-like turnover was 2.2% compared to 3.7% like-for-like growth recorded in the second half of the previous financial year. Despite the slowdown, Boxer said like-for-like volume growth remained positive, continuing a trend that has been in place for the past three years.
“Internal selling price inflation for the period, as measured on a volume-held-constant basis, was -1.9%, representing a further slowdown from the -0.7% and -1.6% previously reported for H1 FY26 and H2 FY26, respectively.
“The reported deflation is the consequence of continued deflation across key commodity categories, particularly maize meal, rice and flour, which all experienced double-digit deflation during the period,” the company said.
Deflation expected not to last long
The continued fall in selling prices has meant that positive sales volumes have not translated into an equivalent increase in turnover. However, the company expects this dynamic to change as it moves through the rest of the financial year.
“Trading for the 20-week period to 19 July 2026 reflected slowing momentum in a highly constrained trading environment, with continued selling price deflation across the Boxer shopping basket,” the company said.
- Boxer Retail opened 19 new outlets (6 superstores, 13 liquor stores) in the first 20 weeks, aiming for 25 superstores and 35 liquor stores this year.
- The retailer expects turnover growth to accelerate in the second half, driven by new stores and anticipated selling price inflation.
- Turnover increased by 7.2% in the period but at a slower pace than the previous year's 10.9% growth.
- Like-for-like turnover growth slowed to 2.2%, though volume growth remained positive for the third consecutive year.
- Selling price deflation, especially on key commodities like maize meal, rice, and flour, has suppressed turnover growth but is expected to reverse later in the year.
