| Mon 25 Oct 2010, 9:15 | | SHP - Shoprite Holdings Limited - Operating Update |
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SHP
SHP
SHP - Shoprite Holdings Limited - Operating Update
SHOPRITE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration no. 1936/007721/06
ISIN: ZAE 000012084
JSE share code: SHP
NSX share code: SRH
LuSE share code: SHOPRITE
("Shoprite" or "Group")
OPERATING UPDATE
For the first quarter ended September 2010, the Shoprite Group grew turnover by
9,7% in a trading environment which showed no improvement from the extremely
depressed market conditions that characterised the financial year to June 2010.
Supermarkets RSA, the Group`s core business, grew turnover by 8,5% while
internal food inflation averaged -1,5% during this period, to produce real
growth of about 10%.
Judging by the growth in basket size and the increase in the number of customer
transactions, management believes Supermarkets RSA was able to make further
gains in local market share, as market share information for the food retailing
sector is no longer available, this perceived growth could not be confirmed.
The global recession continued to curtail economic growth in Africa while a
further surge in the relative strength of the rand placed more pressure on food
exports from South Africa and obliged the Group to source alternative products
elsewhere. In constant currency terms non-RSA sales increased by 13,5% and in
rand terms by 2,1%.
Nothing has changed in the environment in which the Group`s furniture division
trades with the focus remaining on aggressive discounting in this highly
competitive arena. The furniture division succeeded in increasing turnover by
7,2% during the three-month period.
Other divisions increased turnover by 46% mainly as a result of the acquisition
of Transfarm Pharmaceutical Wholesalers at the end of 2009.
Management said stores were being well provisioned for the December festive
season which would be the determining factor in the success of the first half of
the year.
Cape Town
25 October 2010
Sponsor: Nedbank Capital
Date: 25/10/2010 09:15:03 Produced by the JSE SENS Department.
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