Shoprite struggles to regain lost love
Former sweetheart of retail sector sees share price tumble
Reclaiming the "retail darling" title will prove a gruelling task for Shoprite, given the evidence this week of just how deeply entrenched the group's troubles are: the retailer warned that its half-year earnings may fall as much as 26%. The one-time retail sector's favourite got slammed, its share price tumbling as much 17% when it released its trading update on Tuesday, its lowest level in two decades. By the end of the week, Africa's biggest grocer was trading 0.5% weaker. The grocer - steered by retail maverick Whitey Basson for almost 40 years - cited profit concerns in its Angolan operations, which faced an 85% devaluation in the region's currency against the dollar, causing affordability challenges for its consumers. Shoprite chair Christo Wiese, who has a shareholding of about 14% in the company, told Business Times this week that he was confident the group would return to its former glory days when it had the majority market share among the retailers. Clawing back market sh...
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