Head Topics

EDITORIAL: Shoprite finds African pitfalls

  • 📰 BDliveSA
  • ⏱ Reading Time:
  • 39 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 63%

South Africa Headlines News

Retailer is in the middle of a review of its operations in the rest of the continent

For those who have been following Shoprite’s ascent from an SA-focused retailer in early 2000s to a multinational supermarket chain at the vanguard of the African discount grocery retail industry, it looked like a one-way bet on African growth.

And, as Wiese has heard, shareholders want to know how Shoprite plans to deliver a turnaround for the business that in the quarter to end-September suffered a nearly 5% decline in sales and signalled that the 2018 operating losses of more than R260m were not a one-off black swan event. In August, the company revealed a disturbing spike in borrowings as it reported a disappointing 20% drop in profit in the year to end-June.

Wiese is right. It would be foolish these days to think Africa would generate the same kind of returns on investment as the home market. For example, in Angola, Africa’s second-largest crude oil producer, a decline in oil prices and production has wreaked economic havoc in what was once Shoprite’s biggest money spinner.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in ZA

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

EDITORIAL: Africa becomes a dark hunting ground for ShopriteRetailer is in the middle of a review of its operations in the rest of the continent
Source: BDliveSA - 🏆 12. / 63 Read more »

Shoprite may pull plug on some offshore storesUnderperforming outlets in the rest of Africa tip grocer into a hefty 20% drop in annual profit
Source: BDliveSA - 🏆 12. / 63 Read more »

JSE green light for vote on new Shoprite board memberFormer Pepkor CEO Jan le Roux might join Shoprite’s board, says he will champion black economic empowerment
Source: BDliveSA - 🏆 12. / 63 Read more »

Shoprite’s Christo Wiese reappointed as chairSecond-largest shareholder Jan le Roux fails to be appointed to board Great stuff 👍 Whats next ? Marcus Jooste for CEO?
Source: BDliveSA - 🏆 12. / 63 Read more »

WATCH: Stock picks — Shoprite and NestléNick Kunze from Sanlam Private Wealth and Jonathan Fisher from PSG Wealth Sandton Grayston talk to Business Day TV
Source: BDliveSA - 🏆 12. / 63 Read more »

Shoprite delivers strong sales in SA marketSouth Africa’s largest grocer saw its local operations increase sales by 10.3% during the third quarter, with prices at its stores increasing by 3% over the period.
Source: mailandguardian - 🏆 2. / 92 Read more »