RETAILING: Shoprite Continues To Perform Well In Challenging Market
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For the 3 months ending September 2009 the Cape Town-based Shoprite Group grew turnover by 15,3% and increased its market share by 1,6% to the Group’s highest level of 31,67% in September, which is also the largest share of all supermarket groups in South Africa. CEO Whitey Basson said this was achieved in an environment in which internal food inflation had declined to a third of what it was for the same period in 2008.
“These results were attained against the background of the prolonged recession that became increasingly apparent as job losses and shrinking disposable income took their toll on consumers.”
Basson said the global recession has not left the rest of Africa unscathed. The group’s non-RSA business achieved a sales growth of 16,5% at a constant rate of exchange. Due to the strengthening of the rand against other African currencies a 4,3% sales growth in rand terms was achieved.
The Group’s furniture division managed to increase turnover by 8,8% in a difficult trading environment in which aggressive discounting intensified thereby putting further pressure on margins.
Basson said he expected a challenging trading period for the rest of the financial year to June 2010. The current low food inflation and substantially higher cost inflation in expense items were likely to continue.
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