Shoprite reports turnover rises 9.5%

In a statement the company says growth on a like-for-like basis was 2.8% while December sales grew 11.9%.

But the company says the performance must be seen against internal deflation of 1.2% for the six-month period.

Its supermarket operation in South Africa increased sales by 8.4% and by 3.2% but due to the continued weakening of most non-RSA currencies against the rand the turnover of the Group's external supermarkets in rand terms increased by only 3.0%.

At constant currencies a rand turnover growth of 13.5% was achieved.

"Against the background of a furniture industry that was more unfavourably affected by the current economy than most of the retail sector, the Group's furniture division grew sales by 4.3% for the six months," the company reports.

Full audited results will be published on Tuesday, 22 February 2011.

In 2010 Shoprite added 87 new stores, bringing its number of outlets in SA to 1015 and in the rest of Africa to 151.

By June last year the company's 14.6% turnover growth in South African supermarkets, the bulk of its business, outstripped overall market growth of 9.6%.

Last year Checkers, which the company has marketed as a cheaper alternative to rivals Pick n Pay and Woolworths, also increased turnover 13.5% and the average value per transaction 7.5% by the second quarter.

Source: Business Day