| Mon 31 Oct 2011, 9:00 | | SHP - Shoprite Holdings Limited - Operational update |
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SHP
SHP
SHP - Shoprite Holdings Limited - Operational 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 "the Group")
OPERATIONAL UPDATE
For the first quarter ended September 2011, the Shoprite Group increased
total turnover by 10,8%. With total internal inflation at 3,8% this
represents real growth of 7,0%. This compares with turnover growth of
9,7% in the corresponding three months in 2010 when total internal
inflation was -1.5% and confirms that consumers remain under great
stress due to high levels of personal debt and escalating living
expenses.
The Group`s core business, Supermarkets RSA, grew turnover by 10,8% with
internal food inflation averaging 4,0% compared to -1,8% for the
corresponding three months in 2010. Its internal level of food inflation
remains substantially below the official food inflation index of 7,7%
for this period.
Although market share information for the food retailing sector is no
longer available, management is nevertheless confident that, based on
the sector information at its disposal, the Group continued to gain
market share relative to its main competitors. Its confidence is
supported by the increase in basket size ahead of internal inflation and
the positive growth in customer numbers.
The same pressures that affected South African consumers continued to be
evident in the rest of Africa. In constant currencies the turnover
growth was virtually the same as in the corresponding period, namely
13,9% compared to 13,5%. Due to the recent weakening of the rand against
major African currencies, the increase in rand terms was 12,7% as
against 2,1% in 2010.
Although the highly competitive environment in which the furniture
division traded, remained virtually unchanged, turnover grew 12,9%
compared to the three months in 2010 immediately following the World
Cup. Other divisions in the Group which include OK Franchise, Medirite
and Computicket grew turnover by 7%.
Sales have picked up in September and October and management is
confident that this trend will continue into the December festive
season.
Cape Town
31 October 2011
Sponsor: Nedbank Capital
Date: 31/10/2011 09:00:10 Produced by the JSE SENS Department.
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