Shoprite continues to defy tough conditions
Diluted headline earnings up 12% and dividend 11.5%; Retailer created 4,000 jobs in the year to July 2
Shoprite’s result for the financial year to July 2 contained good news for everyone except its competitors. For management and shareholders, the good news included a 12% rise in diluted headline earnings and a 11.5% increase in dividends. For an economy battered daily by reports of job losses, the good news was that Shoprite created 4,000 jobs, securing its position as the largest private-sector employer in SA with more than 140,000 employees, according to Shoprite chairman Christo Wiese. He said he was proud of the fact that despite operating in a depressed economy the company was still creating thousands of jobs every year. "We can rightfully claim to be a world-class company." Analysts said this would be particularly discomforting news for its leading competitor, Pick n Pay, which was forced to shed about 4,000 jobs during its financial 2017.For investors concerned that the proposed deal with Steinhoff Africa (Star) would threaten the sustainability of Shoprite’s sterling track r...
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