Shoprite Sees Persistent Woes Outside South African Market
- Rampant inflation, stricter regulations curb grocer’s margin
- The shares slumped almost 10% to lowest since early 2016
Photographer: Nadine Hutton/Bloomberg
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Shoprite Holdings Ltd. will look to cut costs outside its home market as Africa’s largest food retailer battles currency shortages and stricter regulation in several countries.
The owner of supermarket chains such as Checkers and U-Save has been growing in 14 territories outside South Africa to become a continent-wide superpower, but factors such as inflation -- particularly in Angola -- have hampered progress. That contributed to a 20% decline in earnings over the year through June.