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SHP - Shoprite Holdings Limited - Operational update

Release Date: 31/10/2011 09:00
Code(s): SHP
Wrap Text

SHP - Shoprite Holdings Limited - Operational update SHOPRITE HOLDINGS LIMITED (Incorporated in the Republic of South Africa) Registration no. 1936/007721/06 ISIN: ZAE 000012084 JSE share code: SHP NSX share code: SRH LuSE share code: SHOPRITE ("Shoprite" or "the Group") OPERATIONAL UPDATE For the first quarter ended September 2011, the Shoprite Group increased total turnover by 10,8%. With total internal inflation at 3,8% this represents real growth of 7,0%. This compares with turnover growth of 9,7% in the corresponding three months in 2010 when total internal inflation was -1.5% and confirms that consumers remain under great stress due to high levels of personal debt and escalating living expenses. The Group`s core business, Supermarkets RSA, grew turnover by 10,8% with internal food inflation averaging 4,0% compared to -1,8% for the corresponding three months in 2010. Its internal level of food inflation remains substantially below the official food inflation index of 7,7% for this period. Although market share information for the food retailing sector is no longer available, management is nevertheless confident that, based on the sector information at its disposal, the Group continued to gain market share relative to its main competitors. Its confidence is supported by the increase in basket size ahead of internal inflation and the positive growth in customer numbers. The same pressures that affected South African consumers continued to be evident in the rest of Africa. In constant currencies the turnover growth was virtually the same as in the corresponding period, namely 13,9% compared to 13,5%. Due to the recent weakening of the rand against major African currencies, the increase in rand terms was 12,7% as against 2,1% in 2010. Although the highly competitive environment in which the furniture division traded, remained virtually unchanged, turnover grew 12,9% compared to the three months in 2010 immediately following the World Cup. Other divisions in the Group which include OK Franchise, Medirite and Computicket grew turnover by 7%. Sales have picked up in September and October and management is confident that this trend will continue into the December festive season. Cape Town 31 October 2011 Sponsor: Nedbank Capital Date: 31/10/2011 09:00:10 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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