SA's corporate FMCG retailers’ show resilience and growth in 2024

Source: www.shopriteholdings.co.za

Trade Intelligence’s latest Corporate Retail Comparative Report provides an in-depth analysis of the performance metrics of South Africa’s six listed fast moving consumer goods (FMCG) retailers: Shoprite Holdings, The Spar Group, Pick n Pay Stores, Woolworths Holdings, Clicks Group, and Dis-Chem Pharmacies.

This edition is an update based on indicators published by the end of 2024.

Inflation eases, volumes rise

Over the second half of 2024, food inflation moderated after +10.8% inflation for 2023, on top of the +9.2% in 2022.

This moderation supported underlying volume growth performance, with Shoprite Supermarkets RSA joining Clicks and Boxer in the black, while Woolworths Food and Spar Retail Grocery improved but were still in the red.

Shoprite leads the pack

Shoprite Group continued its strong performance, recording the highest turnover among the six retailers at R241bn and achieving an impressive +12% growth for FY2024.

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Checkers outperformed Woolworths Food for the fifth consecutive year, thanks to strategic store expansions, and the continued success of the Sixty60 delivery service.

Discounters in the spotlight

Boxer has shown outstanding growth, achieving the highest turnover growth among the grocery trading brands (i.e. Shoprite, Checkers, Usave, Spar retail grocery, PnP and Woolworths Food) for the second consecutive year – a solid report card for its first update since its debut on the JSE in November 2024 which positions Boxer for expansion.

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The discount segment is also seeing growth beyond Boxer. Shoprite plans to double its Usave footprint to 1,000 stores over the next five years, and Spar is revitalising its SaveMor format, currently operating 97 stores. This trend highlights the increasing relevance of the discount retail format in the current market.

Expanding footprints

FMCG corporate retailers have significantly expanded their presence across the continent. Over the past five years, they have opened, on average, one store per day in South Africa and Africa, resulting in +24.2% growth in store footprint, for a total that now exceeds 10,000 outlets.

For the grocery retailers, this expansion includes growth in non-grocery channels (i.e., pet, baby, clothing) to diversify revenue streams and enhance profitability.

Strategic investments for the future

Looking ahead, the sector is poised for continued growth, supported by planned capital expenditures totalling R15.7bn for FY2025. These investments will focus on store expansions, maintenance, IT infrastructure, and strategic growth initiatives, reflecting the industry's commitment to sustainable development.

Over 330,000 employees will be part of this growth journey, contributing to the evolution of the FMCG landscape.

As Carey Leighton, Trade Intelligence’s economist and retail analyst, notes, “Leaders are making big decisions and executing strategies for growth, backed by significant CAPEX – shaping not just their businesses but the future of the FMCG industry.”

Get the report here.