Shoprite Holdings has delivered another year of earnings and sales growth, reinforcing the scale advantage of South Africa's largest grocery retailer while showing how digital commerce and adjacent businesses are becoming increasingly important to its growth strategy.
The group reported that sale of merchandise from continuing operations increased 7.2% to R270.8 billion for the 52 weeks ended 28 June 2026, representing an additional R18.1 billion in sales.
Headline earnings per share from continuing operations increased 12.2% to 1,532.5 cents, from a restated 1,365.9 cents in the previous year. Trading profit rose 8.4% to R16.16 billion, while operating profit increased 5.7% to R15.97 billion.
The board declared a final dividend of 566 cents per share, bringing the full-year dividend to 873 cents, 11.8% higher than the prior year's 781 cents.
South African supermarkets remain the engine
Shoprite's domestic supermarket operations remain overwhelmingly important to the group. Supermarkets RSA accounted for 84.5% of group sales and grew sales by 7.1%, adding R15.2 billion to the previous year's base.
Shoprite and Usave increased sales by 4.3%, while Checkers and Checkers Hyper grew by 10%.
Significantly for consumers, the group said internal selling-price inflation in Supermarkets RSA averaged only 0.8% during the year, compared with official food and non-alcoholic beverage inflation of 3.9%. Shoprite recorded internal selling-price deflation of 0.1%, while Usave recorded deflation of 0.6%.
That pricing strategy matters in a South African consumer environment where household budgets remain constrained. Large retailers' ability to absorb, negotiate or offset input-cost pressures can translate into market-share gains, particularly when customers remain highly price-sensitive.
Shoprite said R18.3 billion in Xtra Savings rewards was returned to customers at tills during the year.
Sixty60 becomes a R25.5bn business
The group's digital expansion remains one of the clearest structural shifts in its business. Sales through the Sixty60 on-demand platform increased 34.5% to R25.5 billion, adding a record R6.6 billion in revenue during the year.
For suppliers, logistics companies, property owners and technology providers, that growth has implications extending beyond online grocery orders. Quick commerce requires increasingly sophisticated distribution, inventory management, fulfilment, payments and last-mile delivery infrastructure.
Shoprite is also broadening its exposure outside traditional supermarkets. Petshop Science reached 185 stores after 41 net openings and increased sales by 74.5%.
The group has finalised the acquisition of an initial 51% interest in R&A Cellular and has signed an agreement, subject to conditions and regulatory approval, to acquire Vida e Caffè. The coffee transaction would add a network of roughly 400 corporate and franchise stores.
Rest of Africa improves
After years in which Shoprite reduced or reorganised parts of its African footprint, Supermarkets Non-RSA recorded an 11% increase in reported sales and improved profitability. Constant-currency sales growth was 7.1%.
The result suggests that Shoprite's remaining African operations are beginning to contribute more positively after the group spent years simplifying its geographic portfolio.
Why it matters
Shoprite's results provide a useful snapshot of South African consumer spending. Despite weak economic growth and pressure on household finances, the company continues to grow volumes and expand its store and digital footprint. Its ability to keep internal food inflation relatively low is also likely to intensify competitive pressure across the grocery sector.
For investors, the combination of double-digit headline earnings growth and an 11.8% increase in the annual dividend demonstrates that Shoprite is converting its scale into shareholder returns.
For suppliers and service providers, meanwhile, the expansion of Sixty60, specialist formats, financial services and coffee gives the group an increasingly broad procurement and infrastructure footprint.
