Despite Recession, Shoprite Profit Rises: Turnover Hits N3.86 Trillion

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Shoprite Holdings Ltd has reported group full-year earnings of 141 billon rand or N3.86 trillion for its financial year ended July 2017 with sales from Nigeria and Angola, two of its key markets outside South Africa contributing strongly to group sales.

The company recorded significant growth in naira sales, despite recession that hit the country last year. Analysts however believe that Shoprite’s dominance in essential commodity sales and move into the sales of mainly local products helped it weather the stormy economy.

Even though the South African based retailer did not release its exact sales figures for Nigeria, it announced that it grew its naira sales in the country by 48.2 percent in the year to July 2, 2017. Shoprite also announced that it increased its customer numbers in the country by 38.2 percent in the year to July 2017.

“Supermarkets outside South Africa, which trades in 14 countries in the rest of Africa and the Indian Ocean islands, again produced healthy results. The 308 outlets generated sales of R24.8 billion (N682 billion), 11.7 percent higher than the corresponding period (52 weeks: 13.5%). Angola and Nigeria continue to be the top performers, despite a shortage of foreign currency in these oil-producing countries,” according to a statement by Shoprite released yesterday.

Throwing light on its Nigerian operations, Shoprite noted that “Restrictions on key imported lines remained a challenge in Nigeria, but through a focused marketing drive on local products ,we managed to generate a 48.2 percent sales growth (52 weeks: 50.2%) in local currency,” the retailer said.

“Notwithstanding the trading difficulties, the customer base remains healthy, with the Group’s supermarkets in Nigeria increasing customers by 38.2 percent.”
The company also said that local products now make up 80 percent of its sales in the country, a boost to local manufacturers and the quest to promote “Made-in-Nigeria” goods locally and internationally.

Shoprite has 23 stores in Nigeria, with a further two under construction.

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