Shoprite Reports Strong Q1 Sales Growth At Home And In Wider Africa
Shoprite has been one of the outstanding corporate South African success stories of the past few years. The food retail giant, whose shares are up by about 32% in 2012 following similarly impressive growth over the past few years, has established itself as a leader in both South Africa's organised grocery sector and in leading the charge into wi der S ub-Saharan Africa where there are some phenomenal long-term growth opportunities. In Shoprite's first quarter to September 2012, sales in South Africa were up 12.% year-on-year (y-o-y) to 34.3% internationally. The consistently strong performance of Shoprite's share price over the past few years, its ability to continue growing strongly in South Africa where trading conditions remain challenging and its excellent prospects in the wider region distinguish Shoprite from some of its main rivals in South Africa including Pick 'n' Pay .
|Great Outlook, Emphasises Opportunity That Still Exists At Home|
|South Africa Total Food Retail Sales (US$bn) - Historic & Forecast - 2007-2017|
South Africa Still A Great Opportunity
Our outlook for South African food retail to 2017 is highly positive, with total sales forecast to grow at a compound annual rate of 10%. Given that about 65% of the sector is accounted for by organised retail, which leaves 35% still shopping at kiosks, we expect further formalisation over the next few years. Providing value will be hugely important here, as most people shopping at kiosks do so for its perceived value for money.