Shoprite reports profit despite Africa pull-out

Shoprite Group Chief Executive Officer, Pieter Engelbrecht

by TINTSWALO BALOYI
JOHANNESBURG, (CAJ News) THE Shoprite Group has overcome the closure of its non-South African businesses, and recurrent lockdowns locally, to record R168 billion (US$11,75 billion) in sales for the financial year ended July 4.

This growth equates to an additional R12,6 billion in sales on last year’s restated base.

The Johannesburg Stock Exchange (JSE) -listed firm reported the creation of 3 897 new jobs in the year.

Pieter Engelbrecht, Chief Executive Officer, said while 2021 was a challenging year, as a result of the Group’s commitment and execution, the company increased sale of merchandise by 8,1 percent.

In a 53-week year, Shoprite’s South Africa segment reported sales growth of 9,3 percent despite LiquorShop business being closed for 144 days because of lockdowns.

This result was a combined effort from Shoprite and Usave businesses which increased sales by 8,8 percent, Checkers and Checkers Hyper businesses, which increased sales by 10,9 percent.

“This growth is a testament to our loyal customers and the relentless commitment of our team who ensured we delivered unsurpassed value, either in-store or digitally, throughout the year,” Engelbrecht said.

It was a significant year for the Non-South Africa segment given that Shoprite sold its Nigerian supermarket business, closed operations in Kenya (three stores) and classified operations in Uganda (five stores) as well as discontinuing operations in Madagascar (ten stores).

“The region remains challenging, but our capital allocation review coupled with various in-country initiatives have resulted in improved profitability,” Engelbrecht said.

He said despite being South Africa’s largest private sector employer, Shoprite still aspired to create employment to improve the lives of fellow citizens.

Shoprite was one the major victims of the unrest in South Africa between July 9 and 18, hence the above results are not reflective of the violence.

Stores were looted and vandalised.

– CAJ News

 

 

 

 

 

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