Discount retailer Boxer says it is targeting gaps in the Gauteng and KwaZulu-Natal markets as the company’s store rollouts accelerate.
Boxer CEO Marek Masojada said that Gauteng was the main focus for new store openings because the retailer was still underrepresented in the province. KwaZulu-Natal is also a key area for growth.
Boxer opened 48 net new stores in the 2025 financial year, taking its estate to a total of 525 stores, and plans to open 60 more in the 2026 financial year. It includes 25 supermarkets and 35 liquor outlets.
The retailer opened a new distribution centre in Benoni in 2023 and plans to launch another in KwaZulu-Natal by September, giving the group capacity to support 100 stores in the north and expand further in KwaZulu-Natal, Masojada said.
Boxer’s expansion comes despite a slowdown in like-for-like sales growth, which dropped from 8% in the 2024 financial year to 5.6% in the year under review. Masojada said the lower growth reflected a softer inflationary environment but maintained that the model remains profitable.
“We are very confident that the profitability of the store model is good and that we will be able to enhance our earnings,” he said.
On Monday Boxer reported an 11.8% decline in full-year headline earnings per share (HEPS) because of a 13.4% increase in the number of shares due to the initial public offering (IPO). The IPO resulted in a dilution of value due to the 157.4-million shares that were issued.
HEPS were down 11.8% at 413.76c. While no dividend was declared for the year, Boxer said it remained focused on long-term growth and aimed to pay out 40% of HEPS from the 2026 financial year. The retailer listed on the JSE on November 28 last year.
Turnover was up 13.2% to R42.3bn in the 53 weeks to March 2, while trading profit grew 9.9% to R2.3bn. Its 5.5% trading margin was ahead of the prelisting statement’s 5% guidance.
“We do think there will be some pressure on trading margin this year,” Masojada said adding that cost prices were increasing faster than sell price inflation. He said more costs would be added from bringing the Tongaat distribution centre online.
Masojada called it a “breakthrough year” for Boxer, citing the success of the IPO and the retailer’s ability to outperform expectations in a challenging economic environment. He said the company’s low-price model and efficient supply chain continued to resonate with cash-strapped shoppers.
“It is a model that continues to work, and we are excited about the opportunities ahead and future growth. While there will be continued economic pressures, this is where Boxer really thrives, and we are resolutely focused on execution to capture growth opportunities, which remains our primary focus,” he said.
The group expected low-teen sales growth in the 2026 financial year, given the moderating global economic outlook and competitive pressure in the SA food retail market.
Since its listing, Boxer’s market capitalisation has increased from R28bn in November to R30.8bn, more than parent company Pick n Pay, which is valued at R20.7bn.
Update: May 12 2025
This article has been updated with new information.
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