Shoprite SA sales up 10%

South Africa's largest grocer, Shoprite Holdings, has reported a stellar 10.3% increase in annual profits, driven by customers spending an additional 16 billion rands in stores over the 53-week 2021 period. This surge in sales has pushed the company's headline earnings per share up over 20%, setting the stage for ambitious plans in 2023. Peter Engelbrecht, CEO of Shoprite, shared insights into the company's performance and growth strategies in a recent CNBC Africa interview. Shoprite saw significant gains in market share, with the group securing a record 6.2 billion rands in market share, marking their highest market share ever. The success was attributed to team Shoprite's superior execution, particularly highlighted during the social unrest period when the company quickly embarked on a rebuild plan, showcasing resilience and innovation. One striking achievement was the reconstruction of a store in just 10 days after complete destruction. This spirit of determination and innovation has resonated across the business, leading to market share gains across all segments. The liquor and 60 60 divisions witnessed impressive growth, defying expectations of a slowdown post-COVID. Shoprite recorded a 150% growth in 60 60 sales, with demand on the rise. A notable shift was seen in the liquor business, where the customer profile transformed to include more female patrons. This shift was a result of Shoprite's intentional efforts to create a more welcoming and friendly shopping environment in liquor stores. When addressing concerns of inflation and rising costs, Shoprite revealed internal inflation of 3.9% for the year, which escalated to 7.3% in July. Looking ahead, the company anticipates inflation to reach around 10%, but remains committed to providing value to consumers. Shoprite has already offered discounts worth 9.4 billion rands to its extra savings members, emphasizing the company's dedication to affordability and value for customers. To drive future growth, Shoprite plans to open 275 new stores in the upcoming year. Additionally, the company is focusing on diversifying revenue streams through other income sources, which grew by 19.6% over the year. This strategic move to introduce additional services and alternate revenue streams has been a key driver of Shoprite's comprehensive growth strategy, ensuring a robust business model that goes beyond traditional retail. As Shoprite continues its expansion and innovation, the company is poised for sustained growth and success in the market.