Shoprite records double-digit rise in quarterly revenue

Africa’s largest retailer said revenue for the three months to end-September rose by 12.3 percent.

A file photo shows shoppers at the new South African retail giant Shoprite outlet in Kano, northern Nigeria. Picture: AFP.

JOHANNESBURG - South Africa's Shoprite Holdings jumped 6 percent on Monday, heading towards its biggest daily gain since 2008, after the retailer's double-digit rise in quarterly revenue relieved some concerns about the impact of weak consumer spending.

Africa's largest retailer said revenue for the three months to end-September rose by 12.3 percent from the previous year, with its core South African supermarket business seeing a similar increase.

That performance far outstrips the local industry average of around 2 percent year-on-year growth in July and August, according to data from Statistics South Africa.

Shoprite's shares were up 6 percent at R149.46, on track for their biggest one-day gain in six years.

The grocer's stores in sub-Saharan countries outside of South Africa saw growth of 16 percent, reflecting rising demand for consumer goods in fast-growing markets such as Nigeria.

Shoprite, like many South African companies, has been on a push to increase its sub-Saharan presence to offset weaker demand at home, where consumers are burdened with heavy debt, slow economic growth and higher fuel prices.