Voluntary announcement in relation to South African social and political unrest
Shoprite Holdings Limited
(Incorporated in the Republic of South Africa)
Registration no. 1936/007721/06
JSE share code: SHP
NSX share code: SRH
LuSE share code: SHOPRITE
(“Shoprite Holdings” or the “Company” or “the Group”)
VOLUNTARY ANNOUNCEMENT IN RELATION TO SOUTH AFRICAN SOCIAL AND
Following a week of political and social unrest in South Africa impacting our operations in the
KwaZulu-Natal and Gauteng provinces, this announcement serves to update shareholders of our
assessment of the impact of this event on our operations as at 18 July 2021.
It is noteworthy that, as a result of exceptionally strong turnover in the remainder of the Group’s
nation-wide operations, the Group’s Supermarkets RSA segment achieved positive sales growth
last week. This is despite the direct impact of this unrest on our store base in the KwaZulu-Natal
and Gauteng provinces, precautionary measures taken by the Group to close additional stores
and our LiquorShop business being closed due to lockdown regulations.
The Group is adequately insured for material damage to assets, stock and business interruption.
Whilst some necessary irrecoverable one-off costs have been incurred in relation to protecting
our operations, they are not expected to be material at a Group level and will be highlighted as
part of our routine reporting.
In terms of understanding the context of stores impacted in our Supermarkets RSA segment:
- Of the 1 189 supermarkets trading under the Shoprite, Usave, Checkers and Checkers
Hyper banners, 119 stores (69 Shoprite, 44 Usave and six Checkers, including one
Checkers Hyper) have been severely impacted as a result of looting and/or fire damage;
- Of the Group’s 537-store RSA LiquorShop business, currently restricted from trading
under COVID-19 Alert Level 4 lockdown regulations, 54 stores have been impacted;
- The Group’s Freshmark (fresh produce) distribution centre (DC) in Durban was looted
however its operational capacity has been fully restored since Sunday, 18th July;
- Our KwaZulu-Natal dry goods DC resumed deliveries to our stores in the province from
Thursday last week;
- The Gauteng based DC has operated seamlessly throughout to the extent that it delivered
goods to our KwaZulu-Natal operations from as early as Thursday last week in support of
our stores re-opening in a phased approach throughout the province;
- The majority of the stores closed on a precautionary basis have been reopened. Despite
constraints in certain instances from store closures due to landlords keeping centres
closed, the Group is committed to rebuilding and restoring operations as quickly as
possible and with each passing day we add to our count of stores re-opening for business.
Of the Furniture division’s base of 340 stores in South Africa:
- 35 stores experienced severe damage either from vandalism, looting and/or fire;
- Furthermore, a considerable number of stores in the affected regions were closed during
the week for precautionary reasons, the majority of which have been re-opened as
reflected by 292 stores currently trading. Stores not directly impacted that remain closed
are almost entirely a result of landlords keeping centres closed.
Context of how the Group’s Other operating segments were affected:
- Of the 444 RSA based OK franchise stores, 16 were damaged due to either vandalism,
looting and/or fire. We can report that all bar two of these stores have since re-opened;
- Transpharm, the Group’s wholesale pharmaceutical business did not experience any
disruption to its operations in KwaZulu-Natal or Gauteng. It remains fully operational and,
together with our MediRite Pharmacies business, is serving a critical role with regards the
supply of medicine to hospitals in KwaZulu-Natal.
The information contained in this announcement has not been reviewed or reported on by the
Group’s external auditors.
Group CEO Pieter Engelbrecht:
“Our sincere thanks go out to our colleagues in particular to our regional teams in the affected
areas. Their efforts, together with world class execution by our loss prevention, supply chain and
fleet management teams were unsurpassed.
To our loyal Usave, Shoprite and Checkers customers your resounding show of support
collectively contributed to our ability to re-open and rebuild our business and serve our
communities in KwaZulu-Natal and Gauteng last week. We cannot thank you enough.”
We remain proudly Shoprite.
20 July 2021
Sponsor: Nedbank Corporate and Investment Banking. A division of Nedbank Limited.
Date: 20-07-2021 11:35:00
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