S AFRICA: Shoprite sales slow on consumer pressure
Pressure on consumers’ disposable income reflected a slow-down in sales
South African supermarket operator Shoprite Holdings has booked an increase in full-year sales but said revenues slowed in the second half amid weaker consumer spending in its domestic market.
In the 12 months to the end of June, the group increased sales by 21.1% to ZAR92.7bn (US$9.3bn). On a like-for-like basis, sales were up 5.8%.
However, the growing pressure on consumers' disposable incomes reflected a slow-down in sales in the retailer's home supermarket division, it said, which grew sales by 9.8%.
This had an impact on the group's total performance which saw turnover growth of 10.4% in the second half of the year, compared to 13.8% in the first half.
Outside of South Africa, sales increased by 27.9%.
16 July 2013
?SHOPRITE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration no. 1936/007721/06
JSE share code: SHP
NSX share code: SRH
LuSE share code: SHOPRITE
(”Shoprite Holdings” and “the Group”)
For the 12 months to June 2013 the Group increased total turnover by 12.1% to about R92.7 billion, compared with the corresponding 12 months of 2012. Growth on a like-for-like basis was 5.8%. During the 2013 reporting period, internal food inflation averaged 4.3% compared to 4.9% in the 2012 reporting period.
The growing pressure on consumers’ disposable income reflects in the slow-down in sales in the South African supermarket division, the largest division in the Group, which grew sales by 9.8%
This had an impact on the Group’s total performance which saw turnover growth of 10.4% in the second half of the year, compared to 13.8% in the first half.
When converted to rand, the turnover of the 153 supermarkets the Group operates outside the borders of South Africa, increased by 27.9% compared to the 2012 reporting period. Taken at constant currencies these operations grew by 21.2%.
With relatively low product inflation, the furniture division grew turnover by 4.7%.
The above financial information has not been reviewed or reported on by the Shoprite Holdings’ auditors. The financial results for the review period are expected to be published on or about Tuesday, 20 August 2013.
Original source: Shoprite Holdings
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