Advertise with fastmoving.co.za
 
 

Shoprite’s share price jumped by 6% in opening trading on Monday after the group reported turnover growth of more than 7% in the three months to September.
Shoprite’s share price jumped by 6% in opening trading on Monday after the group reported turnover growth of more than 7% in the three months to September.

Shoprite shares in dramatic U-turn after update

RETAILER NEWS

Fin24 - Nov 5th, 09:04

Shoprite’s share price jumped by 6% in opening trading on Monday after the group reported turnover growth of more than 7% in the three months to September. But by later afternoon, its share price was down almost a percent. 

In South Africa, the Shoprite group’s turnover rose by 10.3%, with prices at its shops rising by 3.0% over the period.

“Whilst all three of our supermarket brands traded well, our hard discounter format Usave led the growth,” the company said in a statement on Monday.

But turnover from African countries outside of South African fell by 4.9%, with its Nigerian business taking a hit due to retaliation attacks on its stores following xenophobic violence in South Africa.

“Management is assessing the performance of the Supermarkets non-RSA segment, with specific reference to the group’s return on capital invested in Africa,” Shoprite said, seemingly indicating that it may freeze more investment, or even cut its losses, in some African markets.

While the Shoprite group has 10 fewer furniture stores following the quarter, it added 10 new Liquorshop outlets to reach 500 stores. It opened eight Usaves, with half being the smaller eKasi “spaza shop” format, four Shoprites and three Checkers stores.

Shoprite signed up more than one million members for its new Checkers shopper card programme in a week and says its new flagship Checkers store in Sandton City has surpassed expectations.
Fin24 

Related News

Checkers brings world-class retail to Constantia with new flagship store
27/11/2019 - 13:01
Checkers has opened the doors to its state-of-the-art 2 330 m² flagship supermarket at the Constantia Emporium as the retailer continues to take innovation to new heights.

Woolworths carves out market share in SA
27/11/2019 - 10:11
In Australia, David Jones's sales declined 2.1%, with the company saying a store refurbishment contributed to the decline.

Push and pull strategies work together to keep consumers coming back for more
26/11/2019 - 10:20
The retail sector is under increasing pressure as consumers have shrinking disposable income in a strained economy. Maintaining share of wallet is critical. Relying solely on a push route to market strategy from manufacturers into retailers is not enough to get consumers buying products. A pull strategy needs to coexist with the push to drive brand consumption. Integrating these strategies requires intelligent and insightful decision-making. This, in turn, requires data generated through smart technology which provides line of sight across the value chain from manufacturer to distribution, retailer to the consumer.

Exclusive leases must fall: Commission cracks whip on Shoprite, Pick n pay, Spar, Woolies
26/11/2019 - 09:57
The Competition Commission Inquiry into Grocery Retail, published on Monday, called for an end to the exclusive leases negotiated by national retail chains in all shopping malls across the country in a bid to open up access to markets for smaller players.

Today’s customers are loyal to speed and convenience, not brands
25/11/2019 - 11:15
Consumer expectations are rapidly shifting as technologies such as mobile, geolocation, social media and increasingly, Internet of Things devices and wearables, connect people to a world of easily accessible information and convenient services. With the ability to browse, compare and order with a few swipes and taps, consumers are becoming trained to value convenience and service above nearly anything else.