Shoprite, backed by Christo Wiese, flags Mozambique review amid record sales

Shoprite Holdings, Africa’s largest retailer and partly owned by South African billionaire Christo Wiese, is reviewing the future of its Mozambique operations as part of a broader consolidation of its African business.

The move comes as the group delivers record sales and profits across its core South African market. Chief Executive Officer Pieter Engelbrecht said the retailer has completed most of its footprint review on the continent but kept Mozambique on a “high alert” list due to persistent economic and security challenges.

Mozambique under scrutiny as Africa strategy tightens

Mozambique’s economy has struggled as multibillion-dollar liquefied natural gas projects stall and Islamist insurgent attacks continue in the northern Palma region. “Without progress on the gas front, Mozambique is in serious trouble,” Engelbrecht said. TotalEnergies’ flagship LNG project has been under force majeure since 2021, though both the company and President Daniel Chapo have hinted at a possible restart.

Shoprite once pursued rapid expansion across Africa, but it has been scaling back in recent times. Inflation, volatile currencies, import duties, and dollar-based rentals have eroded earnings.

Over the past five years, it has exited Ghana, Malawi, Nigeria, Kenya, the Democratic Republic of Congo, Uganda, and Madagascar. However, it now runs 268 stores in seven Southern African Development Community countries, with Namibia, Zambia, and Eswatini as its strongest regional bases.

Record results at home base

Despite international setbacks, Shoprite posted record earnings in its latest 52-week period. Sales from continuing operations rose 8.9 percent to R252.7 billion ($14.3 billion), with the South African supermarket division contributing R216.6 billion ($12.2 billion).

Trading profit climbed 16.6 percent to R14.95 billion ($844 million), while net income advanced 18.8 percent to R7.39 billion ($418 million). Engelbrecht said the group returned R16.5 billion ($931 million) in savings to customers by keeping food inflation in its local stores at just 2.3 percent.

Expansion and job creation in South Africa

Shoprite Holdings Limited is Africa’s largest retailer and the leading food retailer in South Africa, operating in over 3,900 locations across the continent and employing more than 160,000 people. The retailer’s domestic growth stayed strong, with a net 281 new outlets added during the year and 8,723 jobs created.

Shoprite now runs 2,863 corporate-owned and managed stores alongside 615 OK Franchise outlets. Sixty60, the group’s on-demand delivery app, recorded a 47.7 percent sales increase to R18.9 billion, serving customers through 694 stores. Shoprite also pushed into adjacent categories, opening 60 Petshop Science outlets, 10 Uniq clothing stores, and new Checkers Outdoor and Little Me shops.