Number of Shoprite stores up by 90

2012-08-22 00:00

GIANT retailer Shoprite displayed strong resilience amid tougher conditions, increasing its store-footprint — which includes Checkers, Shoprite, Checkers Hyper, House & Home, OK Furniture and Hungry Lion — by 90 stores and employing 7 000 new staff members across Africa and South Africa over the past year or so.

The group, which now employs more than 100 000 people, said yesterday that headline earnings per share rose 19,6% to 607,04 cents for the year ended June 2012.

Its turnover increased by 14,4% year-on-year to R82,7 billion.

Despite the challenging trading environment, the group’s expansion plans appear to be gaining momentum. Judging by Shoprite’s financial results, it appears that the group plans to open more stores, particularly when it comes to brands like Usave, Checkers and Shoprite.

The main area of concern for Shoprite revolves around the widespread expectation that food prices will rise in the months ahead on the back of poorer weather conditions and grain harvests in the U.S..

CE Whitey Basson said in a statement yesterday that although the group’s internal food inflation within its South African stores was only 4,9%, higher food inflation would be in the offing in the near future.

“This slight buoyancy in the market has persisted after year-end, but it is doubtful whether it will last as food prices are bound to rise in line with international markets,” Basson said.

An agricultural economist at FNB, Jan van Zyl told The Witness that he expects food prices — particularly when it comes to protein-related products like eggs, chicken, dairy and beef — to rise during the festive season. Maize and rice prices could also rise.

Van Zyl said increased demand in the summer months would put pressure on consumers’ pockets.

The chief economist of Investment Solutions, Chris Hart, told The Witness that higher inflation, particularly food inflation, would erode the discretionary spending of many consumers.

Basson is alert to the danger, noting: “Nothing on the horizon suggests the pressure on consumers’ disposable income will ease off.”

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/Sport

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.