By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

News Junction

Notification Show More
Font ResizerAa
  • Home
  • World News
    World NewsShow More
    Islamabad says any India threat to be met with ‘firm reciprocal measures’
    Islamabad says any India threat to be met with ‘firm reciprocal measures’
    April 25, 2025
    Nine dead, more than 70 injured in Russian attack on Ukraine capital
    Nine dead, more than 70 injured in Russian attack on Ukraine capital
    April 24, 2025
    Student killed and three injured in stabbing at French school | World News
    Student killed and three injured in stabbing at French school | World News
    April 24, 2025
    Assessing the State of our National Security
    Assessing the State of our National Security
    April 24, 2025
    Trump Tariffs: What products do the EU and US buy from each other? | Donald Trump News
    Trump Tariffs: What products do the EU and US buy from each other? | Donald Trump News
    April 24, 2025
  • Business
    BusinessShow More
    Ukraine blows up bridges to consolidate its positions in Russia
    Ukraine blows up bridges to consolidate its positions in Russia
    August 18, 2024
    Commentary: AI phones from Google and Apple will erode trust in everything
    Commentary: AI phones from Google and Apple will erode trust in everything
    August 18, 2024
    The most famous Indian Dishes – Insights Success
    The most famous Indian Dishes – Insights Success
    August 18, 2024
    Life on the road as a female long rides cyclist
    Life on the road as a female long rides cyclist
    August 18, 2024
    UK inflation rises to 2.2%
    UK inflation rises to 2.2%
    August 18, 2024
  • Cryptocurrency
    CryptocurrencyShow More
    Shaq Inks Deal to Settle With FTX Investors Over Boosting Failed Crypto Exchange
    Shaq Inks Deal to Settle With FTX Investors Over Boosting Failed Crypto Exchange
    April 24, 2025
    Price predictions 4/23: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK, AVAX, SUI
    Price predictions 4/23: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK, AVAX, SUI
    April 24, 2025
    US President’s planned dinner for TRUMP memecoin holders triggers 52% price surge — Will it last?
    US President’s planned dinner for TRUMP memecoin holders triggers 52% price surge — Will it last?
    April 24, 2025
    DeFi platform KiloEx to compensate users impacted by .5M hack
    DeFi platform KiloEx to compensate users impacted by $7.5M hack
    April 24, 2025
    Americans lost .3B to crypto fraud in 2024 — FBI
    Americans lost $9.3B to crypto fraud in 2024 — FBI
    April 24, 2025
  • Technology
    TechnologyShow More
    How to Improve Your Spotify Recommendations
    How to Improve Your Spotify Recommendations
    August 18, 2024
    X says it’s closing operations in Brazil
    X says it’s closing operations in Brazil
    August 18, 2024
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    August 18, 2024
    Scientists Want to See Videos of Your Cat for a New Study
    Scientists Want to See Videos of Your Cat for a New Study
    August 18, 2024
    OpenAI’s new voice mode let me talk with my phone, not to it
    OpenAI’s new voice mode let me talk with my phone, not to it
    August 18, 2024
  • Entertainment
  • Sports News
  • People
  • Trend
Reading: Woolies Food faces fresh onslaught from Shoprite
Share
Font ResizerAa

News Junction

  • World News
  • Business
  • Technology
  • Cryptocurrency
  • Trend
  • Entertainment
Search
  • Recent Headlines in Entertainment, World News, and Cryptocurrency – NewsJunction
  • World News
  • Business
  • Cryptocurrency
  • Technology
  • Entertainment
  • Sports News
  • People
  • Trend
Have an existing account? Sign In
Follow US
News Junction > Blog > Business > Woolies Food faces fresh onslaught from Shoprite
Woolies Food faces fresh onslaught from Shoprite
Business

Woolies Food faces fresh onslaught from Shoprite

Published July 31, 2023
Share
6 Min Read
SHARE

The Woolworths Food business, already facing stiff competition from Shoprite’s Checkers brand, is under fresh attack from the relentless outfit from Brackenfell.

Shoprite’s franchise division, OK, has opened its first OK Urban convenience retail store in Durbanville, Cape Town (just 6km from the group’s head office).

This is not the small-town OK Foods or MiniMark store you may be familiar with.

Its black and white colour scheme with hints of green means it looks a lot more like a Woolies than a Kwikspar. There is a strong fresh offering (including convenience foods, sushi and coffee) and a similar stripped-down range of groceries that one finds in its neighbourhood Checkers Foods format.

Instead of the full variety found in large supermarkets, there are one or two brands (or flavours) per category. Products from the group’s strong and growing Checkers private label offering (including Forage And Feast, Oh My Goodness and Simple Truth) are part of the selection.

Like its new UNIQ clothing stores, OK Urban is cashless, although it has ‘cashiers’ unlike its clothing cousin. The group is aiming squarely at the convenience market – you’re not going to do your monthly shop at these stores – with long trading hours (7am to 8pm).

  • OK Urban stores have a strong fresh offering, including convenience foods, sushi and coffee. Image: Supplied

  • The stores have a stripped-down range of groceries with products from the group’s Checkers private label offering being part of the selection. Image: Supplied

    The stores have a stripped-down range of groceries with products from the group’s Checkers private label offering being part of the selection. Image: Supplied

  • OK Urban is cashless, although it has ‘cashiers’ unlike Shoprite’s UNIQ clothing stores. Image: Supplied

    OK Urban is cashless, although it has ‘cashiers’ unlike Shoprite’s UNIQ clothing stores. Image: Supplied

Moneyweb understands the group has identified a number of sites for these stores in the Western Cape.

The most interesting aspect of this move is that OK is a franchise business. The OK Urban store is company-owned, and once it gets the model right, it will franchise the stores.

This means Woolworths will be facing an onslaught from the group on three fronts: first, Checkers Fresh X supermarkets (the ones with Starbucks and Krispy Kreme) are aimed squarely at the larger Woolworths Food (‘Market’ stores); second, the neighbourhood Checkers Foods stores are allowing the group to enter areas it hasn’t been able to until now; and third, OK Urban will see savvy franchise operators trade in markets they know incredibly well.

That Shoprite has made this move following Woolworths’ decision in 2010 to buy back all its franchise stores is particularly shrewd.

(Spare a thought, too, for Pick n Pay’s franchise business – although PnP has far bigger problems to contend with.)

Under pressure

The Woolies Food business has been under pressure for some time. Almost exactly a year ago, it reported a decline in volumes (sales less inflation) on a like-for-like basis.

This year, it’s in the same boat.

Top-line sales numbers for the 52 weeks to the end of June look decent – up 8.5%, or 6.3% on a comparable store basis. But price movement was 8.3%, meaning volumes were up just 0.2%. When excluding new stores, they declined 2%. One bright spot is that sales growth accelerated to 9.4% (7.2% in comparable stores) in the second half – effectively January to June.

Read:
Numbers show Checkers, PnP eating Woolies Food’s lunch
Mighty Checkers machine rolls on, Sixty60 sales up 150%
Retailers going backwards as SA consumers buckle

Contrast this to Shoprite, which reported an 18% increase in sales at Checkers over the 52 weeks to 2 July.

This was higher than its overall 17.8% gain for its RSA Supermarkets business, where comparable growth was 10.3% (its update did not disclose the like-for-like growth at Checkers). This is a remarkable result, considering its internal selling price inflation was 10.1%.

It opened a total of 301 stores in SA over the past year, which include the 94 acquired from Massmart (all rebranded to Shoprite or Usave). It opened 18 Checkers stores in the first half.

Has this growth accelerated, particularly with the new, smaller Checkers Foods format?

In the first half of the financial year, Shoprite says Checkers grew its market share by R1.9 billion (market share growth was similar at Shoprite).

Overall, the group increased market share by 1.4% in the half, with 46 months of consecutive market share gains. This number will surely go to 52 months when it reports results at the beginning of September.

The momentum at Checkers continues to build. Add the energy from a world-class grocery franchise business, and Woolies (and Pick n Pay) are going to have a lot more to worry about than hefty load shedding diesel bills.

Read:
Supermarkets’ diesel bill nears R3bn in nine months
Will load shedding cut SA Inc profits to zero?

#Woolies #Food #faces #fresh #onslaught #Shoprite

TAGGED:facesfoodFreshonslaughtShopriteWoolies
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article Shh! Anti-agers no one but you need know about: Can I fix my dodgy front teeth without it looking fake? Shh! Anti-agers no one but you need know about: Can I fix my dodgy front teeth without it looking fake?
Next Article North Korea hosts military parade showcasing new drones, nuclear-capable missiles North Korea hosts military parade showcasing new drones, nuclear-capable missiles

You Might Also Like

Driving a long-distance freight train ‘blind’
Business

Driving a long-distance freight train ‘blind’

January 30, 2024
Kwasi Kwarteng admits his mini-budget turmoil affected own mortgage
Business

Kwasi Kwarteng admits his mini-budget turmoil affected own mortgage

August 8, 2023
AMD Rises on AI-Powered Growth – Insights Success
Business

AMD Rises on AI-Powered Growth – Insights Success

August 2, 2023
State eyes Sh20bn cut in equitable revenue share for counties
Business

State eyes Sh20bn cut in equitable revenue share for counties

July 27, 2024

About Us

NEWS JUNCTION (NewsJunction.xyz) Your trusted destination for global news. Stay informed with our timely and accurate reporting on diverse topics, including politics, technology, science, entertainment, sports, and more. Count on us for unbiased and reliable updates at your fingertips.

Quick Link

  • About
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • Contact

Top Categories

  • World News
  • Business
  • Technology
  • Entertainment
  • Cryptocurrency
  • Sports News
  • Trend
  • People

Subscribe

Subscribe to our newsletter to get our newest articles instantly!

    © 2023 News Junction.
    • Blog
    • Advertise
    • Contact
    Welcome Back!

    Sign in to your account

    Username or Email Address
    Password

    Lost your password?