Shoprite total turnover up 10.8%

This compared with turnover growth of 9.7% in the corresponding three months in 2010 when total internal inflation was -1.5%. The group said that this confirmed that consumers remained under great stress due to high levels of personal debt and escalating living expenses.

Shoprite's core business, Supermarkets RSA, grew turnover by 10.8% with internal food inflation averaging 4.0% compared to -1,8% for the corresponding three months in 2010, its internal level of food inflation remains substantially below the official food inflation index of 7.7% for this period.

"Although market share information for the food retailing sector is no longer available, management is nevertheless confident that, based on the sector information at its disposal, the group continued to gain market share relative to its main competitors," Shoprite said.

The same pressures that affected South African consumers continued to be evident in the rest of Africa, in constant currencies the turnover growth was virtually the same as in the corresponding period, namely 13.9% compared to 13.5%.

Due to the recent weakening of the rand against major African currencies, the increase in rand terms was 12.7% as against 2.1% in 2010, it said.

The company added that although the highly competitive environment in which the furniture division traded, turnover remained virtually unchanged, growing 12.9% compared to the three months in 2010, immediately following the World Cup.

Other divisions in the group which include OK Franchise, Medirite and Computicket grew turnover by 7%.

"Sales have picked up in September and October and management is confident that this trend will continue into the December festive season," Shoprite said.