Shoprite Holdings Projects 10.2% Profit Increase in Second Half of 2025
Shoprite Holdings, South Africa's largest grocer, anticipates a profit increase of up to 10.2% for the second half of last year due to robust festive season demand. The retailer projects a rise in headline earnings per share from continuing operations by 5.2% to 10.2% in the six months ending on December 28, 2025, with group sales climbing by 7.2% to 136.8 billion rand ($8.40 billion) from a year earlier. South African supermarket sales surged by 7.1%, with all food and non-food chains reporting growth during the period, while group sales in the October-December quarter increased by 6.5% year-on-year.
In South Africa, like-for-like sales saw a modest 1.9% rise, reflecting a prolonged decline in selling price inflation that transitioned into deflation during the critical November to December 2025 trading period. Shoprite's sales outside of South Africa, where it operates in seven African countries with 272 stores, grew by 12.1%. The company is set to release its final results for the second half of 2025 on March 3.
Shoprite's performance highlights its focus on value and affordability for customers amidst tight household budgets. The company's selling price inflation remained significantly below official food inflation, averaging 0.7% compared to the 4.7% food inflation rate for the period. Data from NielsenIQ revealed that the group's South African supermarkets business outpaced the market growth by 2.3 times. Checkers, Shoprite's upmarket chain targeting mid-to-high income shoppers, experienced an 8.9% sales increase, supported by modest price inflation in its hyper stores.
The competition for affluent customers between Shoprite and Woolworths, the leading upmarket grocer, continues as both retailers invest in premium food offerings to meet consumer demand for convenient meals. Woolworths reported a 7% sales increase in its food business with an average price inflation of 4.6% in the second half of last year. Shoprite's strategic focus on value and affordability, coupled with its premium offerings, has positioned the company well in the competitive grocery market.
In conclusion, Shoprite's strong performance in the second half of 2025, driven by festive season demand and strategic pricing strategies, underscores its resilience and competitive edge in the grocery retail sector. The company's commitment to providing value and affordability to customers, while investing in premium food offerings, has contributed to its continued growth and market outperformance.