By Melody Korongwe
South Africa’s retail sector is undergoing a major shake-up. While giants like Pick n Pay, SPAR, and Italtile are scaling down operations and closing underperforming stores, Shoprite is charging ahead with an aggressive expansion strategy.
Defying the broader market trend, the retail giant is not just surviving but it’s thriving, adding hundreds of new stores and exploring innovative market opportunities.
Shoprite’s latest financial results for the 26 weeks ending December 2024 (HY25) reveal an astonishing 264 new store openings in South Africa alone. This includes 32 new Shoprite supermarkets, 37 Checkers stores, and 81 Shoprite and Checkers Liquor outlets. While 16 stores closed during the same period, the net gain of 248 stores signals the group’s strong confidence in the market.
And the momentum isn’t slowing down. Shoprite has already announced plans for 122 more store openings in the second half of its financial year. The expansion will focus heavily on its USave brand, with 43 new locations in the pipeline.
Additionally, the company is growing its footprint in complementary retail segments, such as clothing, baby products, outdoor gear, and pet supplies.
A key highlight in Shoprite’s growth story is the remarkable success of its pet retail business, Petshop Science.
By March 2025, the brand had expanded to 129 stores, with sales surging by an impressive 56.9% over the interim period.
Shoprite CEO Peter Engelbrecht emphasized the strategic importance of these adjacent businesses, stating, “While small relative to the overall group, expanding into these categories is meaningful for our customers and crucial for our future growth roadmap.”
While expanding aggressively, Shoprite is also streamlining its operations.
The group recently sold its OK Furniture and House & Home brands, reducing its portfolio by 407 stores.
Additionally, it has been shedding non-core assets, such as shopping malls and retail centers, through a sale-and-leaseback strategy. These moves have already contributed R24 million in profit during the reporting period, with more gains expected in the coming months.
In stark contrast to Shoprite’s expansion, other major retailers are facing challenging times. Pick n Pay has closed a net 32 supermarkets in the 45 weeks ending January 2025, including 24 company-owned stores and eight franchise outlets. SPAR, meanwhile, has announced the closure of 13 underperforming stores in its South Rand Region.
Italtile, a leading tile producer and retailer, is also feeling the pressure. With rising crime affecting its operations, the company has had to relocate or shut down several of its 211 stores.
In a statement, the company noted, ‘As criminal behavior and illegal activities flourish, we are investing heavily in security and, in extreme cases, closing stores in unsafe areas.’
Woolworths has had a more balanced performance. While its latest full-year results showed moderate growth in its store network, its food segment faced some cutbacks.
The group opened 21 new Woolworths Fashion, Beauty, and Home stores, bringing its total to 290 outlets, but also closed five food stores, reducing that count to 360.
Looking ahead, Woolworths plans to expand its Absolute Pets brand, adding 172 stores under the Woolworths Food segment by June 2025.
The contrasting fortunes of South Africa’s top retailers reflect the challenging consumer landscape. Shoprite’s bold expansion and diversification strategies are paying off, while others are retreating to focus on core operations.
With Shoprite aggressively growing its market share, the retail giant is poised for even greater dominance while Pick n Pay and SPAR are recalibrating their strategies, hoping to regain momentum.
Melody Korongwe is a driven and ambitious journalist with a strong passion for storytelling. Holding a Bachelor’s Degree in Journalism, Media, and Broadcasting from the University of Zimbabwe, she possesses a solid foundation in newswriting and media principles. With a keen interest in contributing to the media industry, Melody is dedicated to leveraging her writing skills to produce high-quality content. She can be reached at melodykorongwe4@gmail.com or +263 786 640 520
