RETAILING: Shoprite Reports Strong Growth
Recent Western Cape Business News
In the three months to end September the Shoprite Group continued to grow turnover satisfactorily. Total sales increased by 25,9%, identical to the rate of growth recorded in the same period last year. This enabled the group to grow market share in South Africa by 1,5%.
Internal food inflation during the review period rose to 16,5%, double the 8,2% in the corresponding period. In the month of September food inflation eased 0,4% lower than in the preceding two months.
Sales in the Shoprite’s stores outside South Africa increased by 44,5% in rand terms. This growth was affected positively by the weakening of the rand against some of the major African currencies in which the group trades.
Trading conditions in the furniture sector, characterized by aggressive discounting and virtually nil inflation, continued to be extremely tight. The group’s furniture division nevertheless reported a sales increase of 10,2%.
Management said the impact of global economic turbulence on the local market, the still high level of food inflation and the volatility of the rand against major trading currencies, made trading predictions for the nine months to June 2009 difficult.
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