AFTER withdrawing from several West African markets, including Nigeria, Shoprite Holdings has intensified its focus on Southern Africa, using strong regional demand and fast-growing digital sales to sustain expansion despite a difficult retail environment.
The continent’s largest retailer reported merchandise sales of R136.8bn ($8.4 billion) for the six months ending December 2025, representing a 7.2 percent increase year-on-year. The result further widens its lead over competitors such as Pick n Pay and Woolworths Holdings.
The strategy shift reflects a deliberate retreat from more volatile West African operations. After exiting Nigeria earlier, the retailer also classified its businesses in Ghana and Malawi as discontinued, narrowing its footprint but concentrating on markets closer to its home base in South Africa, according to The Africa Report.
According to CEO Pieter Engelbrecht, the company now operates in 7 African countries, all located relatively near South Africa. The move forms part of a strategy to focus on markets where operations can be more efficient and profitable.
Despite the smaller geographic footprint, Shoprite said its supermarkets outside South Africa recorded 12.1 percent sales growth in rand terms, particularly in markets such as Zambia and Angola.
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Digital commerce is emerging as a major growth driver for the retailer. Its on-demand delivery platform, Checkers Sixty60, recorded a 34.6 percent jump in sales to R11.9bn, expanding beyond groceries to include general merchandise and pet supplies.
Alongside its digital push, the retailer continued physical expansion, opening 209 stores within six months.
The results come against a challenging economic backdrop in South Africa, where official food inflation stood at 4.7 percent. Shoprite reported that its internal inflation was just 0.7 percent, with some value-focused brands experiencing price declines.
To cushion customers from rising costs, the company absorbed part of the pressure on prices, which slightly squeezed margins. Despite this, Shoprite still increased its interim dividend by 7.7 percent to 307 cents per share.
