Shoprite tightens its grip on Southern Africa as it turns away from West Africa

Shoprite’s sharp interest in Southern African strong-growth markets and a 34.6% surge in digital sales have allowed the retail giant to outpace market competitors despite a high-cost environment.

Shoprite Holdings, Africa’s largest retailer, proved on Tuesday that even a retail winter of low inflation and rising costs cannot stall its momentum.

In its interim results for the six months ending December 2025, the group reported a 7.2% surge in merchandise sales to R136.8bn ($8.4bn), further distancing itself from competitors like Pick ‘n Pay and Woolworths.

Following the classification of its Ghana and Malawi operations as discontinued, Shoprite is doubling down on a fortress Southern Africa strategy. Shoprite (#6) has moved up three places on The Africa Report‘s 500 Business Champions ranking released this week.

Under CEO Pieter Engelbrecht, Shoprite has systematically exited volatile West African markets, most notably Nigeria. “Our scope of operations on the continent numbers seven countries, all situated relatively close to our South African home base,” Engelbrecht said in a statement announcing the results.

Supermarkets excluding South Africa delivered a 12.1% sales growth in rand terms, showing that while the footprint is smaller, the remaining operations in countries like Zambia and Angola are leaner and more profitable.

Digital dominance: The Sixty60 factor

While physical expansion continues with 209 stores opened in six months, Shoprite’s most potent weapon is digital. Its on-demand delivery platform, Checkers Sixty60, saw sales skyrocket by 34.6% to R11.9bn.

Sixty60 is no longer just a grocery app. It has evolved into a logistical juggernaut that delivers general merchandise and pet supplies, capturing a slice of the pie that previously belonged to specialist retailers.

Defying the macroeconomic squeeze

The results are particularly striking given South Africa’s unique economic climate. While official food inflation sat at 4.7%, Shoprite’s internal inflation was a mere 0.7%, with several price-fighting banners moving into deflation.

The group absorbed many of these costs to protect consumers, leading to a slight margin squeeze, yet still managed to raise its interim dividend by 7.7% to 307 cents per share, it said.

This article originally appeared on The African Report.