The fast-moving consumer goods (FMCG) retail sector has grown over the past five years, with retailers collectively adding more than 10,000 stores, an expansion rate of more than one store per day, according to Trade Intelligence’s latest Corporate Retail Comparative Report
This aggressive expansion, which has driven a 24.2% increase in store footprint, reflects the resilience of the sector, even amid economic challenges such as high inflation.
Trade Intelligence said in 2024 alone, the top six listed FMCG retailers — Shoprite, Spar, Pick n Pay, Woolworths, Clicks and Dis-Chem — demonstrated strong performances, supported by moderating food inflation and strategic investments in new store formats and digital offerings.
Shoprite maintained its dominance as the top performer, reporting the highest turnover of R241bn and a 12% growth rate for the 2024 financial year, Trade Intelligence said. Checkers surpassed Woolworths Food for the fifth consecutive year, driven by strategic store expansions and the continued success of the Sixty60 delivery service, it said.
Boxer, which made its debut on the JSE in November, recorded the highest turnover growth among grocery retailers for a second consecutive year.
Beyond Boxer, according to Trade Intelligence, the discount retail segment is experiencing a surge. Shoprite has announced plans to double its Usave footprint to 1,000 stores within five years, while Spar is revitalising its SaveMor format, which currently operates 97 stores. These moves highlight the increasing consumer demand for value-focused retail options, it said.
In the five years in review, these retailers have not only added grocery outlets but also expanded into non-grocery categories such as pet products, baby essentials and clothing with the aim to diversify and enhance profitability by tapping into new revenue streams, Trade Intelligence said.
In line with this growth, FMCG retailers are investing heavily in infrastructure, with a combined capital expenditure of R15.7bn planned for the 2025 financial year. These funds will go towards store expansions, maintenance, IT infrastructure, and other strategic initiatives, reinforcing the industry’s long-term sustainability.
“The sector is poised for continued growth, supported by planned capital expenditure totalling R15.7bn for financial year 2025. These investments will focus on store expansions, maintenance, IT infrastructure and strategic growth initiatives, reflecting the industry’s commitment to sustainable development. More than 330,000 employees will be part of this growth journey, contributing to the evolution of the FMCG landscape,” Trade Intelligence said.
Despite slowing FMCG sales value growth from 6.5% in the third quarter of 2023 to 4.5% in the third quarter of 2024, consumer spending remains robust. According to the NIQ Retail Spend Barometer, consumers spent R214bn on FMCG and technology and durable products in the third quarter of 2024, reflecting a 4.1% year-on-year increase.
Annual inflation dropped to 3.8% in September 2024, the lowest level since March 2021. This moderation has supported volume growth in key retail segments, particularly benefiting brands such as Shoprite, Clicks, and Boxer.
As retailers invest in physical stores and digital infrastructure, the sector is poised for further growth, ensuring increased accessibility and affordability for SA consumers.
Trade Intelligence economist and retail analyst Carey Leighton said: “Leaders are making big decisions and executing strategies for growth, backed by significant capex — shaping not just their businesses but the future of the FMCG industry.”
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