Shoprite Holdings, South Africa’s biggest grocery retailer, has announced its decision to discontinue its operations in Ghana and Malawi in terms of International Financial Reporting Standard 5.

According to the company in a statement issued on its website on August 5, it received a binding offer during June 2025 to dispose of the assets and liabilities in relation to the operations in Ghana, which consist of seven trading stores and one warehouse.

“The sale is deemed highly probable, and the operations have therefore been classified as discontinued in terms of IFRS 5,” the statement added.

Shoprite Malawi signed a sale of assets agreement on 6 June 2025 to dispose of the assets used in relation to its operations, which consist of five trading stores.

The agreement is pending the fulfillment of conditions precedent to be met during October 2025, including approval from the Competition and Fair Trading Commission as well as the Reserve Bank of Malawi.

According to reports, the planned sales follow exits from Nigeria, Kenya, the Democratic Republic of Congo, Uganda, and Madagascar.

For the 12 months ended 29 June 2025, Shoprite Holdings increased the sale of merchandise from continuing operations by 8.9%, measuring approximately R252.7 billion. This growth was achieved against the Group’s restated R232.1 billion sales from continuing operations for the 12 months ended 30 June 2024.

The Group’s core business, Supermarkets RSA, achieved sales growth of 9.5%, extending its unbroken market share gains to now its 5th consecutive year. As a segment, it contributes 84.5% to Group sales.

Like-for-like sales (i.e. same-store sales) growth for the year measured 4.8%.

Internal selling price inflation averaged 2.3% for the year (first half period 1.9%; second half period 2.7%).

Checkers and Checkers Hyper, inclusive of Checkers LiquorShop, reported sales growth of 13.8%. Online sales through its on-demand delivery platform, Sixty60, have increased by 47.7%. Shoprite and Usave, inclusive of Shoprite LiquorShop, reported sales growth of 5.9%.

In terms of new store openings, the company’s core RSA operations opened 194 main banner supermarkets this year: 43 Shoprite stores, 38 Usave stores, 29 Checkers stores and three Checkers Hyper stores. In addition, our LiquorShop business added 36 Checkers and 45 Shoprite LiquorShops, respectively.

“We continue to expand our footprint as part of our omnichannel growth strategy designed to extend our reach in adjacent categories where we are currently under-represented: Petshop Science added 60 new stores to total 144 stores; Checkers Outdoor added eight new stores to total 28 stores; Uniq clothing by Checkers added 10 new stores to total 30 stores and Little Me opened one new store to total 11 stores,” the company revealed on its website.

In the Group’s reporting currency, the rand, Supermarkets Non-RSA’s sales increased by 6.4%. This equates to an 8.1% contribution to Group sales. In constant currency, Supermarkets Non-RSA increased sales by 14.2%. Supermarkets Non-RSA’s store base increased by a net 14 stores to total 268 stores operating in seven countries.

The Group’s other operating segments comprise OK Franchise, Transpharm, Medirite, Red Star Wholesale Catering Services, and Computicket. The segment reported sales growth of 5.2% for the period, representing 7.4% of Group sales. Sales to the Group’s OK Franchise business increased by 6.7%. After opening a net seven stores (2024: 73 stores, owing to the onboarding of one franchise partner with 60 stores), the OK Franchise division ended the year with 615 stores.

The Group opened five Medirite Plus standalone drugstores during the period to end the year with 18 stores in this new format, over and above the 122 Medirite in-store pharmacies located within our core South African supermarket business.

Following the acquisition during the first half period of the remaining 50% share capital of Pingo, the Group’s last-mile logistics provider, the Group assumed responsibility for both sale of merchandise and delivery to clients.

As a result, this delivery income and the Xtra Savings Plus subscription income earned, together with the related delivery expenses incurred subsequent to the acquisition, are classified as part of the sale of merchandise and cost of sales, respectively.

The Group signed an agreement on 2 September 2024 to dispose of the furniture business, including the OK Furniture and House and Home brands (excluding Angola and Mozambique operations) to Pepkor in order to ensure the long-term sustainability of this business.

The proposed transaction was approved by all relevant authorities in the applicable non-South African territories, and a positive recommendation was made by the South African Competition Commission to the South African Competition Tribunal.

Following the South African Competition Tribunal’s granting of an application to intervene as a participant in the matter by Lewis Stores (Pty) Ltd., the proposed transaction has been delayed. Pepkor and Shoprite have noted their appeal decision with the Competition Appeal Court.

The Group considers it highly probable that these operations will be disposed of, and per its first-half-period disclosure, they remain classified as discontinued operations in accordance with IFRS 5. Accordingly, these operations’ results are excluded from the Group’s continuing operations sales for the year as well as the prior period.

With regard to the Group’s Mozambique and Angola furniture business excluded from the above-mentioned sale to Pepkor, the decision was taken to close Mozambique furniture (this took effect during our second half period) and sell Angola furniture. In accordance with IFRS 5, both businesses have been classified as discontinued operations.

During the first half period the Group repurchased shares to the value of R997 million at an average share price of R289.29. There were no repurchases during the second half period. The Group’s weighted average number of ordinary shares adjusted for dilution for the 12 months measures 543 million (2024: 546 million).

Shoprite Holdings is currently in its closed period. The Group will release its year-end results for the period ended 29 June 2025 on the JSE Stock Exchange News Service (SENS) by 08:00am (SAST, GMT +2) on Tuesday, 2 September 2025.The Group’s 2025 year-end results presentation will follow, commencing at 09:30am (SAST, GMT +2) on Tuesday, 2 September 2025.