Shoprite Holdings Limited · JSE:SHP
Shoprite — H1 2008 Earnings Presentation
21 slides from Shoprite's earnings presentation, 2008
Slide 1: Supermarkets
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Slide 2: RSA Overview
RSA Overview • Customer growth of 13.2% • Shoprite positioning captured the shift in disposable income • This is proven by the fact that some geographical divisions grew 30 – 40% • Total Market share growth of 1.08% • Like for like market share increase of 1.29% 49
Slide 3: RSA Overview
RSA Overview • Exceptional growth in food led to decreased Non Food participation • This together with cost price pressure from China pressurised GP margins • However, trading profit margins improved due to cost efficiencies from 3.8% to 4.4% despite being the lowest priced supermarket in SA 50
Slide 4: Supermarkets opened in period
Supermarkets opened in period Total planned for Total opened until Brand Remainder 2007/2008 fiscal December 2007 Shoprite 8 6 2 Checkers 8 3 5 Usave 18 8 10 Total 34 17 17 51
Slide 5: Current Supermarket Stores
Current Supermarket Stores Shoprite 106 Checkers 24 CH Hyper USave 373 119 Total: 622 52
Slide 6: Shoprite Holdings
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Slide 7: RSA Shoprite Overview
RSA Shoprite Overview • Sales growth 27.3% • Market leader: 301 stores RSA • 6 new stores opened • Grown customer base 15.55% 54
Slide 8: Market Position – The Shoprite Price!
Market Position – The Shoprite Price! • 33 million customers per month • More shoppers than any other supermarket – now more than 12 million individuals (AMPS 2007) • Highest customer loyalty - 42% of Shoprite customers shop exclusively at Shoprite (Amps 2007) 55
Slide 9: Any Food Shopping
Any Food Shopping (multiple response) 42% of all SA Adults shop at Shoprite whilst more than half of SA Adults shop at either Shoprite or Checkers 60% 52% 50% 42% 40% 30% 30% 28% 26% 20% 14% 10% 0% Shoprite Ch & Hyp Shoprite P'nP Group Spar Group Woolworths Group Source: AMPS (All Media and Products
Slide 10: 2nd Store of choice for competitors' main shoppers
2nd Store of choice for competitors’ main shoppers Shoprite is the most preferred 2nd shopping destination amongst its major competitors loyalist bulk shoppers Pick 'n Pay 36 Spar 34 Woolworths 28 Checkers 23 0 10 20 30 40 50 60 Source: AMPS (All Media and Products Survey) 2007 57
Slide 11: Retailer support measured amongst the residents of eight informal settlements
Retailer support measured amongst the residents of eight informal settlements Woolworths 4% Q: Who do you support most? (single response) SPAR 7% Checkers 9% Pick 'n Pay 19% 47% Shoprite 0% 10% 20% 30% 40% 50% Source: Infusion My Shopping October 2007 58
Slide 12: WOU
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Slide 13: Usave Number of Stores
Usave Number of Stores Jun 07 - Jun 07 - Jun 06 Total Open Closed RSA 77 8 2 83 Non-RSA 22 1 0 23 Total 99 9 2 106 60
Slide 14: Usave Overview
Usave Overview • Total sales growth 44.1% (GEB 28.2%) • Customer Growth 22.5% • ROI in excess of 25% • GP% consciously reduced by 2% - resulted in positive profit growth • Introduced full automated replenishment which reduced stockholding further • 114 private labels allowed additional GP of 9.5% •
Slide 15: Shoprite Holdings
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Slide 16: RSA Checkers Overview
RSA Checkers Overview • Sales growth 13.4% • 3 new stores opened • Basket size growth 6.7% • Customer growth 6.3% • Hyper store growth lagging 63
Slide 17: Checkers
Checkers • Now 2nd most loyal shopper count after Shoprite, 32% of Checkers shoppers shop exclusively at Checkers (AMPS 2007) • More than 13 million customers per month • More than 5 million individuals • Continuing to enhance our leadership in key categories: – Wine – Cheese – Meat 64
Slide 18: Checkers Positioning
Checkers Positioning • Still is that we simply give you real reasons why we are different, so that you can put us to the test 65
Slide 19: Better for you, every day!
Better for you, every day! le harmacist —s P in this store HEALTHCARE BETTER AND GETTER Better for you, every day! Lew reson) More than 77] 400 cheeses Better for you, every day! Classic Range Fre Better for you, wery dau! We bring the Wine Route to you Better for you, every day! REASON Fresh produc
Slide 20: Future
Future • Higher Inflation • Value of the Rand •Out run our competitors 67
Slide 21: Questions
Questions