Shoprite-Checkers eats other retailers’ lunch as it posts double-digit growth over the past year

Africa’s largest retailer, Shoprite-Checkers, has enjoyed double-digit sales growth over the past year, despite rolling blackouts and other economic headwinds, while increasing its value proposition to customers and putting more than R13.5-billion back in their pockets at the till point. 

Its annual results, for the year ended 2 July, reveal that sales were up by 17% or R26-billion on the previous year to R215-billion. 

For the new financial year, the retail giant has allocated as much as R8.5-billion to capital expenditure to increase capacity in its supply chain, refurbish and expand existing stores, and fund the group’s digital commerce and technology-related initiatives.



The group plans to add a further 200,000 square metres in new distribution centres over the next two years to support its 2,121 supermarkets in South Africa, with 314 new stores planned.

In the year under review, the group in SA opened 340 stores and integrated 94 stores and a meat store acquired from Massmart for R662-million. Those were remodelled as Shoprites (51), Usave (one), and Shoprite Liquor (42). Two of these Massmart stores have not yet begun trading due to a liquor licence transfer issue.

About 4,480 positions in the former Massmart stores were retained, bringing Shoprite’s total job increases to 8,131.

It has spent R213-million on capital assets to onboard the Massmart stores since acquisition and expects to spend more to bring the stores in line with the group’s standards.

The group hiked sales by 17% to R215-billion in the 2022/23 financial year, with South African supermarkets up 17.8% to R173.6-billion.

Total income was up 15.6%, while total expenses, excluding Shoprite Employees Trust distributions, diesel in SA supermarkets and additional insurance, were up 14.9%.

The group’s diluted headline earnings per share increased by 9.7% and its full-year dividend per share by 10.5% to 663c.

Group CEO Pieter Engelbrecht said in the context of the country’s power problems, they were pleased to report growth in headline earnings and dividends per share. Had it not been for the additional expense incurred in diesel – R1.3-billion to power generators – their market-leading sales growth would have delivered considerably higher returns for their shareholders and employees would have benefited from a higher Shoprite Employee Trust distribution.

Engelbrecht said that in many respects, 2023 was “extraordinary”.

“The Group gained record levels of market share, saved customers over R13.5-billion in Xtra Savings and still managed to increase profits and dividends, despite the prohibitive cost to the business as a result of unprecedented levels of load shedding.”

Checkers and Checkers Hyper’s 18% sales growth, he said, could be attributed to superb delivery on value and range for their customers, with their delivery service, Checkers Sixty60 (which does not report separate sales), increasing sales by 81.5%. 

Value offerings Shoprite and Usave grew sales by 15.6% – customers in this segment are particularly vulnerable to higher food, transport and interest costs, which is why the group focuses on improving product affordability. 

Since it first introduced its R5 value meals in April 2016, Shoprite stores have sold more than 623 million R5 meals and R5 bread.

In 2017, it added a range of R5 deli meals, which include a large vetkoek (amagwinya), a chicken hot dog, and a fried egg and tomato sandwich.

In 2021, the R5 offering was expanded to include an eight-pack of sanitary pads. DM