- Shoprite's Supermarkets in Non-RSA segment’s sales declined 4.9%.
- Africa’s biggest retailer attributes the cause to currency devaluations and a challenging quarter report marred by xenophobic attacks in Nigeria.
- Shoprite holdings continue its market share gains in South Africa.
Shoprite Holdings says it currently assessing the performance of the Supermarkets of the rest of African countries outside South Africa after posting a downturn in the markets.
In the three months to September 2019 financial results released on Monday, November 04, 2019, the Shoprite's Supermarkets Non-RSA segment’s sales declined 4.9%.
What caused negative quarterly report for Shoprite in African countries?
The South African firm attributed the cause to currency devaluations and a challenging quarter report marred by xenophobic attacks in Nigeria.
Other highlights from Supermarkets Non-RSA
- Currency turnover growth of 0.9%, inclusive of a 12.2% decline in constant-currency turnover in our Angolan operation.
- Turnover in Supermarkets Non-RSA declined by 7.7% to R21.3 billion, inclusive of a decline in Angolan supermarkets of 38.4%.
- Supermarkets Non-RSA like-for-like sales declined by 11.9%.
- Third-quarter revenue fell 4.9%.
The group's financial results
Shoprite Group’s turnover increased by 7.3%. The Group’s core business, Supermarkets RSA, grew sales by 10.3% during the quarter, continuing its market share gains.
How profitable is Shoprite in Zambia, Angola, and Nigeria?
With 24 outlets in Nigeria, Shoprite operations outside South Africa continued to post declines owing to FX conversion in local currencies and rising inflation.
Last year, Shoprite recorded a sharp drop in profit and a 3.8% decline in earnings in 2017 - the first negative returns in 19 years.
The firm says it will limit capital expenditure in Non-RSA markets, control costs, and maintain operational efficiency.
Shoprite group mull exit from other African countries outside South Africa
The company said management is assessing the performance of the Supermarkets Non-RSA segment, with specific reference to the Group’s return on capital invested in Africa.