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Shoprite 6-month turnover up

Retailer Shoprite Holdings on Monday said that for the six months ending December 2012‚ the group grew turnover by about 13.8% to R46.7bn.

Growth on a like-for-like basis was 6.9%.

Photo: Leon Nicholas. Credit: INDEPENDENT MEDIA

The South African supermarket operation increased sales by 11.5% and by 6.2% on a like-for-like basis.

For the month of December 2012 sales were 10.8% higher than for the corresponding period. Internal food inflation was on average 4.3% compared to the estimated official figure of 5.9%.

The rand remained weaker against most non-RSA currencies resulting in the group’s non-RSA supermarkets achieving a sales growth of 28.2% and‚ on a like-for-like basis‚ of 13.4%. At constant currencies a rand turnover growth of 23.5% was achieved.

Shoprite said the furniture industry remained negatively effected by the present economic conditions and the group’s furniture division grew sales by 4.8% for the period.

“This growth came mainly from the lower LSM groups‚” Shoprite said.

The financial results for the review period will be published on or about Tuesday‚ February 19‚ the group said.

Following the announcement of the sales report, Shoprite’s shares dropped 4 percent after the company reporeds first-half revenue that falls short of expectations.

“The general view is that the numbers are little bit light; not quite at the levels people were expecting,” said Reuben Beelders, chief investment officer at Gryphon Asset Management.

“Also the trend is down. Retailers have reported so many years of growing revenues, I think at some point there should be a slowdown. The price has run incredibly hard.” - I-Net Bridge and Reuters

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