Shoprite Q1 sales up 11,8%

JOHANNESBURG – South African retailer Shoprite Holdings Ltd said yesterday first-quarter total turnover rose 11,8 per cent on a comparable basis.

“The group is confident that the growth trend of the first quarter will continue in the second quarter,” a statement said. “Operating profit and operating margins for the group were on budget,” it added, giving no details.In August, the company, which runs the Shoprite, Checkers and Usave supermarket brands, said full-year turnover rose by 11,9 per cent to 29,81 billion rand as low-income earners spent more amid strong economic growth and falling unemployment.It also boosted headline earnings per share by 48,5 per cent in the 53 weeks to end-June.Yesterday, the firm cautioned that if the central bank raised interest rates, this could dampen growth.Central Bank Governor Tito Mboweni warned last week that the next move in interest rates would likely be upwards to curb the inflationary impact of high global oil prices.”In that case the sale of durable and semi-durable goods would be affected more than that of foods as the lower income groups tend to be less affected by such changes,” Shoprite said.The group said that its furniture division, in line with sector trends, was starting to reflect a slow-down in consumer spending with turnover growth of 13,9 per cent.It said that eight supermarkets and five Usave outlets were opened in the first quarter with a further 32 stores due to be opened by the end of December.-Nampa-Reuters”Operating profit and operating margins for the group were on budget,” it added, giving no details.In August, the company, which runs the Shoprite, Checkers and Usave supermarket brands, said full-year turnover rose by 11,9 per cent to 29,81 billion rand as low-income earners spent more amid strong economic growth and falling unemployment.It also boosted headline earnings per share by 48,5 per cent in the 53 weeks to end-June.Yesterday, the firm cautioned that if the central bank raised interest rates, this could dampen growth.Central Bank Governor Tito Mboweni warned last week that the next move in interest rates would likely be upwards to curb the inflationary impact of high global oil prices.”In that case the sale of durable and semi-durable goods would be affected more than that of foods as the lower income groups tend to be less affected by such changes,” Shoprite said.The group said that its furniture division, in line with sector trends, was starting to reflect a slow-down in consumer spending with turnover growth of 13,9 per cent.It said that eight supermarkets and five Usave outlets were opened in the first quarter with a further 32 stores due to be opened by the end of December.-Nampa-Reuters