RETAILING: Shoprite's Turnover Up 25%
Recent Western Cape Business News
For the 12 months to end June 2009 the Cape Town-based Shoprite Group increased total turnover by 24,5% to about R59,3 billion. Growth on a like-for-like basis was 19,1%. During this period internal food inflation rose to 15,8% compared to 10,6% during the corresponding 12 months.
Turnover growth slowed in the second half of the year to 21,8% from 27,3%. Management ascribes the slower turnover growth to the increasing pressure on the disposable income of consumers and the lower internal food inflation which reduced from 16,9% in the first six months to 14,7% in the second.
The South African supermarket division, the core operation of the Group, increased sales by 22,8%. This division continued its policy of cutting margins on basic foodstuffs to alleviate the impact of food price increases on consumers.
The 102 supermarkets the Group operates outside the borders of South Africa grew turnover by 39,9% compared to the previous year. The growth achieved on a like-for-like basis was 36,7%. Lower turnover growth in the second half of the year resulted from the strengthening of the rand against the currencies of some of the countries in which it trades in Africa.
The Franchise Division, trading mainly under the OK banner, reported a turnover increase for the 12 months of 26,6%.
Despite reduced consumer spending on durable goods the Furniture Division succeeded in growing turnover by 13,9% in a relatively low inflationary environment.
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