South African grocer Shoprite has posted a jump in turnover as the group was able to increase its share of the market in the three months to end September.
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In a statement released today (26 October), Shoprite said that turnover increased by 15.3% during the period.
As of September, the company’s market share had risen to 31.67% of total grocery sales in the country, up by 1.6%.
Shoprite CEO Whitey Basson said this was achieved despite the easing of food inflation, which declined by two-thirds from the comparable period of last year.
“These results were attained against the background of the prolonged recession that became increasingly apparent as job losses and shrinking disposable income took their toll on consumers,” Basson said.
Basson added that the global recession has not left the rest of Africa unscathed.
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By GlobalDataNevertheless, the group’s business outside South Africa saw revenues rise 16.5% at a constant exchange rates, or 4.3% after currency exchange.
Shoprite said that the “challenging trading period” was expected to continue for the rest of the fiscal year to June, Basson cautioned.
Low food inflation and “substantially higher” cost inflation in expense items are likely to continue, he concluded.
