Checkers raking it in with Sixty60

Shoprite released an operational update for the year ended 30 June 2024, revealing strong growth for its on-demand delivery service, Checkers Sixty60.

Sales on the platform grew by 58.1% over the course of the year, contributing to the 12.3% sales growth reported by Checkers and Checkers Hyper.

Checkers, Checkers Hyper, and Shoprite fall under the company’s Supermarkets RSA business, which reported sales from continuing operations of R173.6 billion, while overall group sales amounted to R215 billion.

“The Group’s core business, Supermarkets RSA, achieved sales growth of 12.3%, contributing 81.0% to Group sales,” said Shoprite.

“This growth is reported against the prior year period in which sales increased by 17.8%.”

It noted that, unlike its first-half results, its sales growth includes the stores Shoprite acquired from Massmart Holdings. It said it achieved second-half sales growth of 10.1% with the stores included.

“Like-for-like sales growth for the period measured 6.3% noting that the stores acquired from Massmart were included in like-for-like sales growth only for the second half period,” it added.

Shoprite’s Supermarkets RSA business opened 201 stores during the year, comprising 20 Shoprite, 22 USave, 25 Checkers, and 71 LiquorShop stores, bringing its total footprint to 2,322 locations.

“The remaining 63 were new format, adjacent category specialist stores,” it said.

These include stores like Petshop Science, Checkers Outdoor, UNIQ Clothing by Checkers, and Little Me.

Shoprite said it had nearly halved its diesel expenditure in the second half of the year.

During the first half, it spent R500 million on diesel to power generators, which decreased to R254 million in the second half.

“This decrease in diesel costs should be considered in light of a commensurate increase in electricity usage,” it said.

“As a result, we anticipate the percentage increase in the Group’s water and electricity expense for the year should be mid to low single digits.”