Shoprite continues pan-African expansion with Kenyan entry
South African Shoprite Holdings SHPJ.J is set to move into the Kenya market, as weak performance from competitors has presented an opportunity for it to expand its presence in East Africa, its chief executive Pieter Engelbrecht said Tuesday.
South African retail giant has struggled for growth in recent times. The company’s growth projection at home has been affected by high household debts which have resulted in a squeeze on consumer income.
Although Shoprite has fared better than others with its focus on budget-conscious consumers, including more than 10 million South Africans on welfare grants.
To diversify its earnings base, Shoprite has aggressively spread its presence across major markets in the continent including oil-rich Nigeria and Angola and now Kenya.
“We have not changed our focus to say we’re not looking at the continent anymore. We have grabbed that opportunity, we’re going to Kenya,” Engelbrecht said at the presentation of the company’s half-year results.
Shoprite, which reported a 14.2 percent increase in half-year headline earnings per share, expects to be in Kenya before the end of 2018.
“Five years ago, Kenya wasn’t considered by us because they had three very big retailers there,” said Engelbrecht.
“Starting last year … the retailers in Kenya were in total disarray and we were able to secure seven sites and leases.”
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