A WEE DRAM
CHRIS GILMOUR: Low-cost retailer gets it Rite as Woolworths and Massmart flounder in slow economy
‘Shoprite delivers an excellent result much appreciated by the market’
A mixed picture emerged when three of the largest JSE-listed retailers, Shoprite, Woolworths and Massmart, announced their results in a moribund economy recently. Shoprite surprised on the upside, Woolies disappointed and Massmart shocked. I chatted to seasoned retail analyst Syd Vianello, who had words for all of them. On a comparable 52 weeks of trading, Shoprite increased turnover 10.6% and diluted headline earnings per share rose 16.1%. Like-for-like turnover growth, which excludes the effect of new floor space, rose 5.8% and internal food inflation was measured at 5.9%. Overall, it was an excellent result much appreciated by the market. Approving of new CEO Pieter Engelbrecht and his motivated team, Vianello says the Shoprite brand continues to resonate "very strongly" with lower prices. As it rolls out far more stores than any of its competitors in areas where customers live, such as townships, it is picking up more of that business than its rivals. "And store cannibalisation ...
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