A top government source in Ogun state recently disclosed that the recently opened Shoprite store in Ibadan met its revenue projection for 6 months in less than 8 weeks.
As food retail in South Africa is becoming more competitive, Shoprite is expanding in the rest of the continent. Sales climbed 28 percent to 11.7 billion rand in supermarkets outside its home market as the rand weakened against the dollar and some African currencies, making imports from South Africa more affordable. Supermarkets in the region contributed 14.2 percent to total sales.
Shoprite CEO Whitey Basson said “The non-South Africa operations are an opportunity to satisfy consumers’ appetite for upmarket products,” adding that the seven stores in Nigeria sold more Moet & Chandon champagne than all the liquor shops in South Africa last year.
Shoprite has 153 stores in 16 African countries excluding South Africa, having opened 19 supermarkets in its last fiscal year. A further 20 stores are due to open by June next year and an additional 27 thereafter.
“The focus remained on the West coast of Africa, particularly Nigeria and Angola,” Shoprite said. The grocer didn’t enter any new markets, preferring to improve “economies of scale” in existing markets.
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