Shoprite, largest African retailer, sales hit record US$16.3b; hiring slows

Shoprite Holdings lifted sales 7.2 per cent to R270.8 billion (US$16.3 billion) in its 2026 financial year and raised its dividend almost 12 per cent, but South Africa’s largest food retailer created barely half as many new jobs as it did a year earlier.

That said the group remains in growth mode.

“During the period the group opened 348 stores, expanding its continuing operations footprint to 3,710 stores,” stated CEO Pieter Engelbrecht in statements acccompanying the financials. “The group’s cash generative capability is reflected in its cash generated from operations of R27.6 billion (US$1.6 billion) for the period.”

The group, which published its report in October, reported trading profit of R16.2 billion for the 52 weeks to June 28, up 8.4 per cent, and diluted headline earnings per share of 1,527.4 cents, up 12.2 per cent. The dividend rose 11.8 per cent to 873 cents a share. Sales from continuing operations added R18.1 billion over the year.

NET EMPLOYMENT

Engelbrecht framed the outcome as value shared across stakeholders, which he said “requires alignment, accountability and commitment across every part of the business”. He thanked the group’s more than 174,000 employees and said the result reflected its collective strength and the trust it earns from customers daily.

Shoprite created 5,491 direct new jobs in the year as against 8,723 the year before, a fall of 37 per cent, taking total headcount to 174,430. The group markets itself as one of Africa’s largest private-sector employers, and the slowdown came in a year when it opened 268 stores in its core South African supermarkets segment and beat its own roll-out target.

Growth is also shifting away from food. Petshop Science, which Shoprite built in-house, reached 185 stores and grew sales 74.5 per cent. Checkers Sixty60, the on-demand delivery service, operated from 328 stores as against 287 a year earlier. The group won approval to acquire R&A Cellular, a step it described as extending its financial services ecosystem into South Africa’s informal economy.

Shoprite closed the year with 3,710 stores across eight African countries, 573 OK Franchise outlets and 36.5 million Xtra Savings rewards customers. It returned R18.3 billion to shoppers in cash savings through that programme, up from R16.5 billion.

Trading margin widened only slightly, to 5.97 per cent from 5.90 per cent, which points to volume and cost control rather than pricing behind the profit growth. The group has continued to retreat from African markets where it judged its operations sub-scale, reporting those as discontinued.

Shoprite remains South Africa’s largest retailer by market capitalisation, sales, profit, employees and customers. It began with eight stores in 1979.

business@gleanerjm.com