November 4, 2019 / 10:13 AM / 13 days ago

Shoprite's USave a bright spot in S.Africa's slowing economy

JOHANNESBURG, Nov 4 (Reuters) - In a bright spot amid South Africa’s economic woes, Shoprite Holdings managed a 7.3% rise in quarterly revenue as shoppers turned to its discount unit USave.

While its international operations saw sales fall 4.9% hurt by currency devaluations and anti-immigrant attacks, the supermarket operator reported a 10.3% rise in South Africa for the three months to Sept 30.

It opened eight USave stores, which offer discounted goods in low income areas, in the quarter.

Days of riots in South Africa chiefly targeting foreign-owned businesses sparked retaliatory attacks elsewhere, forcing Shoprite to close several stores in early September in South Africa, Nigeria and Zambia.

“Management is assessing the performance of the Supermarkets Non-RSA segment, with specific reference to the Group’s return on capital invested in Africa,” Shoprite said in a statement without providing detail.

The company’s other operations comprising OK Franchise, Computicket, Medirite pharmacies, and Checker’s Food Services reported a 6.4% increase in sales. (Reporting by Naledi Mashishi; editing by Jason Neely)

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