SHOPRITE GROWS TURNOVER 9.5% DESPITE DEFLATION

Shoprite Holdings has announced turnover growth for the six months to December 2010 of 9,5% to R36,3bn despite internal deflation averaging 1,2% during that period. Growth on a like-for-like basis was 2,8%. It ended the period strongly with sales growth of 11,9% for December.

Shoprite CE Whitey Basson said the group’s core business, its supermarket operation in South Africa, increased sales by 8,4% and by 3,2% on a like-for-like basis.

Due to the continued weakening of most non-RSA currencies against the rand, the turnover of the group’s non-RSA supermarkets in rand terms increased by only 3,0% and, on a like-for-like basis, by about 1,0%. However, taken at constant currencies, a rand turnover growth of 13,5% was achieved.

Basson said the group’s furniture division grew sales by 4,3% during the reporting period. The furniture industry was harder hit by the current economic slowdown than most other areas of the retail sector.

Shoprite’s financial results are expected to be published on 22 February.

This article was originally posted on Sustainable Development Africa Platform

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