Record profit, increased dividend - Is Shoprite the winner of 'Lockdown 2020'?
Retailer Shoprite's not only grown its profits but is increasing its dividend at a time when many companies are reporting sharp losses.
The company's stable includes Checkers and Usave.
Releasing its results for the 52 weeks to 28 June 2020, Shoprite reported a 6.4% increase in overall sales to a record R156.9 billion:
"Our core Supermarkets RSA operating segment increased sales by 8.7%"
If this was a reality tv show, the winner of Lockdown 2020 I think would be Shoprite!Bruce Whitfield, The Money Show host
Bruce Whitfield interviews the CEO of Shoprite, Pieter Engelbrecht.
[Laughs] Yes it's been interesting - we not only had to contend with this African environment with about 14 other countries in a state of flux... it was a busy period for us.Pieter Engelbrecht, CEO - Shoprite
Whitfield asks in what ways the Covid-10 pandemic "helped" Shoprite.
Engelbrecht details how profits continued despite liquor and furniture outlets being closed during hard lockdown.
There has been assistance, primarily if one looks at the fact that the hospitality industry was closed and the people reverted to more in-home dining etcetera...Pieter Engelbrecht, CEO - Shoprite
That part of the market in South Africa is worth R60 billion, so one mustn't discard that there were benefits also.Pieter Engelbrecht, CEO - Shoprite
And the market share snatched from competitors?
If we look at the numbers, all of the commercial brands - Usave, Shoprite and Checkers - for the entire 12 months have outgrown the market and our numbers are included in the market.Pieter Engelbrecht, CEO - Shoprite
It wasn't a single event... This was by design. I think we have very clearly put out what our strategy was and is about three years ago... and it's working for us.Pieter Engelbrecht, CEO - Shoprite
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The Checkers Sixty60 grocery delivery app has been a huge success and will be expanded.
It would be ridiculous to quote percentages here, it will just be a crazy number... What is the most revealing, we thought that as we come out of the hard lockdown to lower levels of lockdown that we would see a reduction in the demand of that service, but the opposite is true!Pieter Engelbrecht, CEO - Shoprite
What Covid has done is actually to just accelerate that part of our strategy because most of us have been forced to become more digital.Pieter Engelbrecht, CEO - Shoprite
For more detail, take a listen to the discussion below:
Source : https://www.123rf.com/photo_144120042_man-in-mask-and-protective-gloves-buying-food-in-shop-at-coronavirus-epidemic.html