Shoprite Holdings

Shoprite Holdings said on Monday that its turnover grew by 15.3% for the 3 months ending September. The group added that it increased its market share by 1.6% to its highest level of 31.67% in September. In an operational update Shoprite said it now boasted the largest share of all supermarket groups in South Africa. "This was achieved in a period in which internal food inflation declined to a third of what it was for the same period of the previous year.

These results were achieved against the background of the prolonged recession that became increasingly apparent as job losses and shrinking disposable income took their toll on consumers," the supermarket chain said. The global recession has not left the rest of Africa unscathed. However, the Group's non-RSA business achieved a sales growth of 16.5% at a constant rate of exchange. Due to the strengthening of the Rand against other African currencies a 4.3% sales growth in Rand terms was achieved. "In a difficult furniture trading environment aggressive discounting intensified, putting additional pressure on margins.

The Group's furniture division nevertheless managed to increase turnover by 8.8%," Shoprite said. "Management expects a challenging trading period for the rest of the financial year to June 2010. The current low food inflation and substantially higher cost inflation in expense items is likely to continue," the group concluded.