Shoprite Holdings sales up

JOHANNESBURG – South African retailer Shoprite Holdings posted a jump in first-quarter revenues yesterday thanks to buoyant consumer confidence and forecast brighter first-half sales and operating profit.

Shoprite, which owns the Shoprite, Checkers and Usave chains, said in a statement that underlying sales rose 9,3 per cent in the first three months of its financial year, despite low food prices and a strong rand, which hurt profits on sales outside South Africa. The company said operating profit and margins were “on budget” for the period.Shoprite stock gained 2,27 per cent to 11,26 rand by 0825 GMT, beating a slightly firmer South African bluechip index.All three chains sustained sales growth, while revenues at its furniture division leapt more than 20 per cent amid a home-furnishing craze in South Africa.The company opened three supermarkets and eight Usave stores during the period, and said it would open another 21 in December, with a further 115 stores by the end of 2005, it said.Shoprite was expecting a stellar Christmas season and forecast higher first-half revenues and operating profit.”Turnover and operating profit for the six months to end December are expected to be better than for the corresponding period when sales were adversely impacted by a countrywide strike that affected primarily Shoprite stores,” the company said.-Nampa-ReutersThe company said operating profit and margins were “on budget” for the period.Shoprite stock gained 2,27 per cent to 11,26 rand by 0825 GMT, beating a slightly firmer South African bluechip index.All three chains sustained sales growth, while revenues at its furniture division leapt more than 20 per cent amid a home-furnishing craze in South Africa.The company opened three supermarkets and eight Usave stores during the period, and said it would open another 21 in December, with a further 115 stores by the end of 2005, it said.Shoprite was expecting a stellar Christmas season and forecast higher first-half revenues and operating profit.”Turnover and operating profit for the six months to end December are expected to be better than for the corresponding period when sales were adversely impacted by a countrywide strike that affected primarily Shoprite stores,” the company said.-Nampa-Reuters