Shoprite SENS statement:
Operational update for the six months ended 27 December 2020
For the six months to 27 December 2020 the Shoprite Group increased total sale of merchandise by 4.7% to approximately R83.4bn. Excluding the impact of the closure of the RSA LiquorShop business due to COVID-19 lockdown regulations, the Group increased total sale of merchandise by 6.3%.
The following information provides context to the overall sales growth:
Supermarkets RSA
- The Group’s core business, Supermarkets RSA, contributing 78.0% to Group sales, achieved sales growth of 5.6% (like-for-like 4.8%).
- Supermarkets RSA, excluding LiquorShop sales, achieved sales growth of 7.8% (like-for-like 5.7%).
- Checkers and Checkers Hyper reported sales growth of 11.1%.
- Shoprite and Usave reported sales growth of 5.6%.
- The Group’s LiquorShop business’ sales declined by 21.8%. Due to the COVID-19 nationwide lockdown regulations, the Group’s LiquorShop business was required to close for trade on Fridays and/or weekends and more recently, close completely. The total number of days our liquor business was closed totalled 79 days over the six months: 60 days during the first quarter and 19 days during the second quarter.
- Internal selling price inflation measured 4.3%, a result of second quarter inflation declining slightly to 4.2% from the 4.4% reported for the first quarter.
- Supermarkets RSA opened a net of 45 stores.
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Supermarkets Non-RSA
- Supermarkets Non-RSA increased sales in constant currency by 0.9% as pre-existing challenges from a macro economic and consumer affordability perspective were exacerbated by COVID-19 and its associated lockdown restrictions.
- Supermarkets Non-RSA’s sales declined by 8.4% in rand terms and contributed to 10.2% of Group sales.
- Supermarkets Non-RSA’s net store base was unchanged.
Furniture
- The Group’s Furniture segment, made up of OK Furniture and House & Home, increased sales by 15.7% (like-for-like 17.3%).
- Whilst growth remained high overall, growth during the second quarter was impacted by an already high base in December 2019.
- Credit sales participation declined to 11.8% (Dec 2019: 13.7%).
- The Furniture segment closed a net of ten stores.
Other operating segments
- The Group’s Other operating segments, comprising OK Franchise, Transpharm, MediRite Pharmacies, Checkers Food Services (CFS) and Computicket, reported sales growth of 10.0%.
- The MediRite Pharmacies and Transpharm business traded well. Both CFS and Computicket were negatively impacted by COVID-19 lockdown regulations given their reliance on tourism, hospitality, travel and eventing.
- The Group’s OK Franchise division remained resilient, achieving sales growth of 8.1% despite the impact of the liquor lockdown restrictions. The OK Franchise business added a net of 28 stores.
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Update on discontinued operations – Nigeria
The Group communicated previously the decision to sell either all or a majority stake in its Retail Supermarkets Nigeria Limited subsidiary. We hereby confirm that the terms of sale have been concluded and that the transaction has been lodged with the Nigerian Federal Competition and Consumer Protection Commission (FCCPC) for approval. Management expects the transaction to be approved by the end of the 2021 financial year.
Group interim results release, presentation timing and registration link
The Group plans to publish its 2021 interim results on SENS by 08h00 on Tuesday, 16 March 2021. The 2021 interim results webcast presentation will follow at 09h00.
