Discount retailer Boxer is accelerating its expansion into township and rural areas as competition with spaza shops and independent traders intensifies, using data and local insights to guide new store openings and growth initiatives.
The company lifted turnover by 13.9% to R22.5bn in the first half of its 2026 financial year, with like-for-like sales growth of 5.3%, well ahead of internal food price deflation of 0.7%. Trading profit rose 15.1% to R931m, while the trading margin held steady at 4.1% despite additional costs linked to its JSE listing. Headline earnings increased 5.3% to R518m.
CEO Marek Masojada said the growth remained volume-led despite consumer strain, as shoppers sought consistent value and reliability amid rising food insecurity and declining disposable income.
Boxer opened 25 new stores during the first half — nine supermarkets, 15 liquor outlets and one building store — bringing its total to 547 across SA and Eswatini. The company plans to open 36 more outlets in the second half to reach its full-year target of 60 new stores.
The expansion has supported employment, with the retailer creating more than 2,300 new jobs and promoting 2,100 employees internally, bringing the workforce to about 34,000 people. Masojada said the jobs were sustainable and drawn primarily from local communities.
Despite price deflation in some categories, Boxer maintained profitability through higher sales volumes and tight cost control.
A part of the retailer’s strategy is its growing logistics network. It recently commissioned its seventh distribution centre, in Tongaat, KwaZulu-Natal, to improve supply chain reach and product availability, supporting expansion into underserved areas.
The company is leveraging customer data through its Boxer Rewards Club, which has 2.3-million members. Masojada said the insights help Boxer tailor promotions, understand shopping patterns and collaborate with suppliers. Analytics also guide site selection, with demographic mapping and cellular data used to identify high-potential locations in townships and rural areas.
Boxer’s latest annual report highlighted the competitive pressures from informal retailers, with the company saying that spaza shops and independent traders increasingly compete on price and convenience, while formal players rely on scale, product quality and trust to differentiate themselves. Boxer said it is expanding deeper into underserved communities, leveraging procurement power, private labels, multiple payment options and digital offerings to enhance value and accessibility.
The report also highlighted growing financial pressure on consumers, with households spending a larger share of income on food and many dependent on social grants. Boxer has responded by maintaining the lowest-cost basket, offering bulk and combo deals, and supporting social welfare initiatives and local hiring to strengthen community ties, Masojada said.
At the end of the period under review, Boxer held a net cash position of R1.1bn, compared with net debt of R180m at the end of the previous financial year. Cash generation supported the company’s first interim dividend of 45.3c per share, representing a 40% payout ratio.
Masojada said trading momentum had remained encouraging into the second half, though performance over Black Friday and the festive period would shape the full-year outcome.
While some pressure on the trading margin is expected compared with 5.4% in the 2025 financial year, he said Boxer remained confident in its long-term strategy, supported by operating leverage, continued debt reduction and reinvestment into customer pricing and experience.
Update 13 October 2025: This story has been updated with more information.
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