SA’s major grocery retailers are viewing liquor as a high-growth, high-margin extension of their core offering.
The aggressive expansion of stand-alone liquor formats, particularly by the Shoprite group, reflects a race to secure footprint, market share and shopper loyalty in a category still largely driven by in-store behaviour.
Data from Trade Intelligence’s liquor retailing report shows that SA’s off-trade liquor market, which includes grocery liquor stores, wholesalers and liquor hypers surpassed R100bn in total sales in 2024. The report said over the past five years, the number of stand-alone liquor outlets operated by listed grocery retailers has increased by 31%, nearly twice the pace of their grocery store growth.
Shoprite is leading the charge with Trade Intelligence saying it has overtaken Spar’s Tops as the retailer with the largest number of liquor outlets in the country. According to the group’s 2024 annual report, Shoprite operates 925 liquor stores across its LiquorShop and OK Liquor banners, while Tops has 914 stores.
Shoprite’s liquor business reported a 20% rise in annual sales for 2024. Growth continued into the new financial year, with LiquorShop recording 11% growth and Checkers LiquorShop rising by 14.2% in the first half of the 2025 financial year. The group added a net 71 new liquor stores in 2024, closing the year with 753 LiquorShop outlets in SA.
Tops continues to hold a substantial share of the market, but its growth has been comparatively modest. According to Spar’s latest annual report, Tops saw a 9.4% increase in liquor sales over the same period. Pick n Pay and Boxer are also expanding in the segment. Woolworths has maintained a more curated liquor offering, aligning with its broader positioning in the premium retail space.
Trade Intelligence said the liquor category remains primarily physical, with more than 90% of shoppers still buying in-store across the spirits, wine, beer and ready-to-drink categories. This shopper behaviour underpins the physical expansion strategy being deployed by retailers, particularly as liquor is often bought with a specific purpose or occasion in mind.
Trade Intelligence identified several “shopper missions” such as stocking up for an event, buying a bottle for later, or hunting for promotions that influence store format choice and channel use, it said.
New behaviours are also emerging, particularly among younger consumers. Trade Intelligence’s report reveals that 46% of 18-24-year-old ready-to-drink and cider shoppers regularly use delivery apps and are more likely to compare options across digital platforms.
While off-trade channels are booming, the on-trade segment — which includes bars, taverns, and restaurants — continues to lag behind. The report shows that on-trade turnover in 2024 reached R47bn, below the R59bn recorded in 2019 before the pandemic. Within the on-trade environment, taverns have shown some recovery, but bars and restaurants remain constrained by higher costs, changing consumption patterns and economic uncertainty.
Broader trends in the alcohol market also inform retail performance. According to one of the world’s largest independently owned suppliers of bulk premium alcohol, organic alcohol and spirits, Sasma, the SA alcoholic beverage industry is experiencing a period of rapid transformation with the market projected to grow at a compound annual rate of 11.3% in 2024-30.
Drivers include rising urbanisation, increased disposable income in the middle class and growing demand for premium and ethically produced products, Sasma’s alcohol market report said.
However, the market also faces challenges. Sasma said economic uncertainty was prompting consumers to trade down to more affordable brands, while global players such as Heineken, Diageo and SAB continue to consolidate their positions.
“Currently, three foreign-owned companies — Diageo, SAB and Heineken — account for about 85% of the market value. This concentration of power has been further intensified by Heineken’s $2.4bn acquisition of Distell Group Holdings,” Sasma said.
“The consolidation trend is likely to have far-reaching effects on the alcohol industry in SA. While it may lead to increased efficiency and potentially lower consumer prices, it also raises concern about market competition.”
Despite these headwinds, the retail liquor market continues to show resilience. Business Day previously reported that the beverage sector is drawing strong local and international investment, signalling long-term confidence in its growth.
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