Rest of Africa weighs on Sho­prite

The Citizen (KZN) - - BUSINESS -

Sho­prite in­creased turnover 6.4% in the three months to end-Septem­ber, buoyed by SA sales, but with weaker com­mod­ity prices weigh­ing on its busi­ness in the rest of Africa.

It grew SA sales 8.1% in the pe­riod, as it kept price in­creases low amid weak eco­nomic growth.

Sho­prite, which is in 15 African coun­tries, said it slashed the prices of sta­ples such as maize meal and pota­toes in its SA home mar­ket, re­duc­ing the com­pany’s in­ter­nal in­fla­tion to 0.9% across all prod­ucts, ver­sus 7.2% a year ago.

“Strip­ping out the ef­fect of in­fla­tion, the real sales growth sur­passed the prior year’s growth in the same quar­ter,” the com­pany stated.

But sales growth in An­gola slowed “sig­nif­i­cantly” from an in­crease of 110% the pre­vi­ous year. Sho­prite’s su­per­mar­kets out­side SA re­ported a 1.8% drop in turnover mainly due to the im­pact of lower com­mod­ity prices and weaker cur­ren­cies in An­gola, Nige­ria and Zam­bia.

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