Shoprite - operational update
22 January 2020 10:48
For the six months to 29 December 2019 the Shoprite Group increased total sale of merchandise by 7.0% to approximately R81.2 billion. The Group's supermarket business grew customer visits by 2.1% and product volumes by 4.4%.

The following provides context to the overall sales growth for the six months:
- The Group's core business, Supermarkets RSA, achieved sales growth of 9.8% for the period.
-- Internal selling price inflation moderated from 3.0% during the first quarter to 2.4% in the second quarter, resulting in internal selling price inflation of 2.7% for the six months.
-- All three supermarket brands, Shoprite, Checkers and Usave, traded well in a tough market.
-- Liquor sales remained strong, with sales growing 20.5%.
- Supermarkets Non-RSA recorded a decline in sales of 3.1% in rand terms.
-- We have continued to experience ongoing currency devaluations and volatility in key markets in which we trade. The Angolan kwanza weakened by 40.6% against the US dollar since June 2019. During the reporting period, the Angolan kwanza, Zambian kwacha and Nigerian naira depreciated 40.4%, 20.8% and 18.2% respectively against the US dollar when compared to the previous year.
-- Constant currency growth measured 4.8%.
- The Furniture Division's sales declined 2.7% for the six months to 29 December 2019, impacted by a reduction in the store base of 13 net stores over the period; load shedding in South Africa and currency devaluations in certain Non-RSA countries.
- Other operating segments which include OK Franchise, Computicket, MediRite Pharmacies, Transpharm and Checkers Food Services grew sales by 4.4%. The period included a 6-week strike in Transpharm, the Group's pharmaceutical wholesale business. OK Franchise's growth for the six months to 29 December 2019 measured 7.5%.

For the six months to 29 December 2019 the Group added a net 66 stores to its supermarket business to end the period with 1 911 stores. Franchise added a net 10 stores to end December with 470 stores.

The Group's interim results for the six months ended 29 December 2019 are scheduled for release on SENS on or about 25 February 2020.
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