Ann Crotty Writer-at-large

Shoprite's share price fell 16.6% to R148.83 on Wednesday morning when the market reacted to a trading update it released at 5.30pm on Tuesday. Just two years after taking over as CEO of Africa’s biggest grocer from long-serving Shoprite CEO Whitey Basson, Pieter Engelbrecht looks set to announce what one analyst described as the group’s worst-ever results, with profits for the six months ended-December expected to be down as much as 36%. In a trading update released late on Tuesday, Shoprite warned shareholders that the group’s operations had been hit by a long list of negative factors, including low food inflation, temporary stock shortages, currency devaluations, lower gross margins and inflexible expense increases. Basson led the company from 1979 when it comprised just eight stores, expanding its footprint into major economies on the African continent. The group now has more than 2,840 stores in 14 countries. Engelbrecht, who had worked closely with Basson for several years, to...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now