Grocery retailers report: Checkers trumps Woolies and 'shoppers forced to spend differently'

Trade Intelligence’s bi-annual Corporate Retail Comparative Report (CRCR) offers a comprehensive analysis of the comparative performance of South Africa’s six major grocery retail companies:

Shoprite Holdings
The Spar Group
Pick n Pay Stores
Woolworths Holdings
Clicks Group
Dis-Chem Pharmacies

Key findings include:

Turnover growth: Although turnover growth appeared satisfactory, the report found that when the growth attributed to price inflation and new stores were stripped away, real volume growth remained flat.
Profit under pressure: Gross margins have reached a four-year low, averaging 21.4% across corporate retailers.
Store footprint expansion: In the first half of 2024, 378 net new stores were added, particularly pharmacies, which focus on shoppers' need for convenience.
Heightened competition for high-end shoppers: Checkers continues to triumph over Woolworths Food, with its average turnover per store now 2.6 times higher than Woolworths’.

Slabber says that these findings are a reflection of the current economic climate.

With the increasing prices, she says shoppers are 'forced' to settle for more affordable alternatives that will provide more bang for their buck.