Shoprite has reported a rise in half-year profit for its H1 2026, ending in December 2025, driven by strong customer demand during the festive season and explosive growth from its Checkers Sixty60 on-demand delivery platform. Despite the solid top-line performance, the retailer’s shares fell as decelerating food price inflation and investment in lower prices for consumers squeezed gross margins. The company has declared an increased interim dividend and signalled its intention to continue leading on price to support its value-seeking customer base while leveraging its digital advantage.
● Revenue: R138.9 billion, an increase of 7.1% from R129.7 billion.
● Operating Profit: R7.7 billion, a 3.5% increase from R7.4 billion.
● Headline Earnings Per Share (HEPS): R7.11, a 7.7% increase from R6.60.
● Interim Dividend: R3.07 per share, an increase from R2.85 in the prior period.
Shoprite's results reflect a deliberate trade-off. Aggressive discounting and price leadership drove customer growth but squeezed margins, contributing to the negative share price reaction on the day. The standout story is Checkers Sixty60, whose sales surged by over a third and is now available in 875 stores, cementing its position as the dominant on-demand grocery platform in South Africa. Looking ahead, CEO Pieter Engelbrecht remains focused on price, value and digital expansion, with the company projecting a slight improvement in full-year gross profit margins despite the low inflation environment. Investors and consumers should keep a close eye on Shoprite's next set of results as its digital business continues to scale.
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
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