Shares jumped as Africa's largest supermarket chain signaled that its aggressive store expansion and digital push are translating into real profit growth — raising the question of whether Shoprite can sustain this pace once the easy gains from physical rollout slow down.
R270.8 Billion in Sales, but Prices Barely Moved
Merchandise sales from continuing operations for the 52 weeks ended June 28 increased 7.2% to roughly R270.8 billion ($16.7 billion), up from R252.7 billion a year earlier. The critical detail: Shoprite sustained internal selling price deflation of -0.1% for the full year at its core Shoprite brand. That means nearly all growth came from selling more stuff to more people, not raising prices — a sign of genuine market-share capture but also a warning that margin expansion will be hard to come by without inflation tailwinds.
Earnings Guidance Accelerated From the First Half
Shoprite expects full-year HEPS from continuing operations of R14.98 to R15.66, up 9.7% to 14.7% from last year's restated R13.65. That's a notable step-up: at half-year, management had guided HEPS growth of just 5.2% to 10.2% , meaning the second half materially outperformed. Management had targeted a trading margin of 5.7% to 5.9% , a range investors will scrutinize when full results land September 1.
The Delivery App That Now Accounts for a Tenth of South African Sales
Checkers Sixty60, the group's on-demand grocery delivery platform, increased sales 34.5% to R25.5 billion for the year — now representing roughly 10% of Shoprite's total South African sales.
The next phase will expand into general merchandise and household items , broadening the app's share of each customer's spending. The risk: delivery-cost reclassifications and rising utility expenses continue to pressure margins even as volumes soar.
262 New Stores Opened — Scale Has a Cost
Shoprite opened 273 new stores in the past 12 months (262 in South African supermarkets alone), achieving space growth of 7.3% — above its own guidance. Capital expenditure is tracking around R7.5 billion, with roughly 82% directed at expansion. That spending sustains top-line momentum but pressures free cash flow and raises depreciation costs. With the stock up 7.8% today at $18.87, the market is betting Shoprite's combination of physical scale and digital reach can keep compounding — a thesis that September's full numbers will either confirm or challenge.