Shoprite sales dampened by liquor ban

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Shoprite sales dampened by liquor ban

Published Date: 2020-11-17 | Source: Stephen Gunnion | Author: Stephen Gunnion

Shoprite sales dampened by liquor ban

The retailer has welcomed the recent easing of restrictions on alcohol sales.

Shoprite has reported muted growth in sales for the first quarter of its financial year after it was forced to close its liquor stores for two-thirds of the period.

In an operational update, the retail giant said group sales rose 3% over the three months ended September, with its local supermarkets showing growth of 3.3%. However, excluding LiquorShop, sales were 6% higher across the group and were up by 7.2% in its home market. Its Supermarkets Non-RSA division reported an 8.4% decline in sales. However, it managed to grow furniture sales by 20.6% over the period.

Shoprite said its LiquorShops were closed for 60 of the 91 days in the quarter. However, ignoring lost alcohol sales, it said its Shoprite, Usave, Checkers and Checkers Hyper supermarkets continued to report market share gains. It opened 25 new stores during the three-month period and raised prices by an average 4.4%.

Its operations outside SA also continued to be impacted by Covid-19 lockdown and associated restrictions. While Zambia traded well, Angola remained under pressure. Their performances were affected by current devaluations as well.

Shoprite welcomed last week's announcement lifting the restriction of off-consumption liquor trade.

Shoprite's shares fell 8.4% to R132.22 yesterday.





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