Major expansion plans for Shoprite – including a massive new campus in Joburg

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Retail giant Shoprite says it plans to expand rapidly in South Africa, adding hundreds of new stores and building a new campus in Johannesburg.

In presenting its annual results for the year to July 2022, the group reported a 6.8% increase in profit to R11 billion, with sales up 9.6% to R184.1 billion.

Despite being hit by the devastation caused by the July 2021 riots, the group said it managed to add a net number of 117 stores in the fiscal year.

Speaking of store operations, Shoprite is targeting a record 275 store openings in 2023 across the entire group. Within this segment, the RSA Supermarkets segment plans to open 220 stores, 95 of which will serve the mid-to-low segment.

This expansion is outside the stores that the group expects to acquire as part of the proposed acquisition of Cambridge Food, Massfresh and Masscash Cash and Carry. The new stores also do not include the stores scheduled to reopen due to social unrest closures.

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“We have moved our proposed acquisition of Cambridge Food, Massfresh and Masscash Cash and Carry to the Competition Tribunal approval stage,” said Shoprite CEO, Pieter Engelbrecht.

“I sincerely hope that this transaction can be completed in the first half of fiscal 2023 so that we can integrate these companies and their employees into the operations of our South African Shoprite supermarkets.”

In terms of supply chain, 2023 also marks the start of the first phase of a multi-year supply chain expansion, which it says will add approximately 200,000 square meters of distribution capacity over the next three years.

As part of this, the group also plans to do groundbreaking work in a new 85,000 square meter campus in Johannesburg during this first quarter period, with a go-live for this facility expected by the end of fiscal 2024.

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“We have a lot to do in terms of executing our strategy to grow the business in the coming years, this is just one of our initiatives and we look forward to reporting in 2023 on our progress on this and our other plans,” Engelbrecht said. .

Currently, the group has 29 distribution centers across its operations, covering 673,843 square metres, including the Cilmor Distribution Center in Brackenfell, Cape Town, where its head office is located.

During fiscal 2022, Shoprite added 124 new stores in South Africa, while closing seven, resulting in a net increase of 117 stores.

Some stores remained closed due to the civil unrest that took place in July 2021. At the end of the reporting period, the number of stores still closed due to major damage during the civil unrest was a total of 31 – including two Checkers Hypers. Nine of these are not slated to reopen, the group said.

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The Checkers brand continues the chain’s store upgrade strategy, with an additional 43 stores renovated this year. In terms of new stores, Checkers opened 10 new supermarkets during the period, three of which are in the new Checkers Foods district (average size 1,153 square meters).

In addition, 21 independent premium Petshop Science pet stores and one independent Little Me baby store were opened during the year.

Checkers, including Checkers Hyper, closed the period with 275 stores.

The group opened 42 liquor stores and 30 Usave stores in the year, adding 19 under the Shoprite brand.


Read: Shoprite points to strong store growth and employment in South Africa