You might think retailers of fast moving consumer goods (FMCG) have a better story to tell than their counterparts in other sectors despite sluggish economic conditions, but, on evidence of Shoprite Group CEO’s recent statements, that does not seem to be the case.
From Shoprite’s experience growth in the local market has stalled, lamented CEO Whitey Basson during presentation of the Group’s results. “South Africa is growing so badly,” he said.
Following domestic disappointment, Shoprite is focussing on making the most of vast opportunities in African countries. “To maintain reasonable growth for the group we have had to increase our African expansion,” said Basson.
The group has earmarked R1.5 billion for opening 30 new stores and strengthening distribution infrastructure in Africa’s fastest growing economies, which will take its store base on the continent to 200 stores in 2015.
Specifically, it is focused on economic growth in Nigeria, Mozambique, Angola and Zambia, resource-rich countries – where GDP growth averages 6.5%.