Johannesburg – The Shoprite Group, Africa’s largest retailer, unveiled its capital expenditure for the 2024 financial year.
The JSE-listed company, which also owns Checkers, reported a total capital spend of R7.8 billion, up from R6.8 billion in the previous year.
This expenditure represented 3.2% of Shoprite’s sales in 2024, compared to 3.1% in 2023.
“The majority of the capital expenditure relates to expanding and upgrading our core Supermarkets RSA store portfolio as well as our continued investment in digital commerce and technology-related expenditure,” the company informed investors.
During the period under review, Shoprite successfully completed a 41 000 sqm extension of its distribution center (DC) in the KwaZulu-Natal region and took possession of a new 94,000 sqm DC site in Gauteng.
“Our plans to strengthen the support and expansion of our Eastern Cape region include the establishment of a new DC scheduled for completion at the end of October 2024,” Shoprite stated.
These DC expansions were financed with the Group’s strategic partners, Retail Logistics Fund (RF) (Pty) Ltd and Equites Property Fund Limited.
Is Checkers Sixty60, Shoprite’s digital on-demand grocery delivery service, beginning to lose momentum?
Today, the Shoprite Group announced that Checkers Sixty60 saw a 58.1% increase in sales for the 2024 financial year.
However, this growth is notably lower compared to the 81.5% rise reported in 2023.
The company did not provide an explanation for the slowdown in sales growth for Checkers Sixty60 during this reporting period.
Shoprite, Africa’s largest retailer, revealed today that it is in advanced negotiations to acquire the remaining stake in Pingo Delivery, a last-mile logistics provider.
“In terms of the way forward, we have embarked on two structural changes to the business, both occurring subsequent to our June year-end close,” stated Pieter Engelbrecht, CEO of Shoprite.
*The article first appeared in our sister publication: techfinancials.co.za
