Rest of Africa weighs on Shoprite
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.