Discount retailer Boxer is mirroring Shoprite’s success as the battle for the bullish township economy intensifies, expanding aggressively and creating thousands of jobs even as South Africa’s economy remains under pressure.
In a country with unemployment of more than 30%, Boxer added about 3,400 jobs in its 2026 financial year and opened 51 new stores, taking its footprint to 576 stores. The growth comes as consumers face rising living costs and constrained spending.
The strategy echoes that of Shoprite, which created 8,723 jobs and opened 281 stores in its most recent financial year, with plans to add 10,000 more jobs and more than 300 stores in 2026.
Meanwhile, Boxer’s parent company, Pick n Pay is under union fire for triggering a section 189A process on more than 22,000 employees of the struggling retailer.
Boxer and Shoprite are focused on the lower-income market, targeting township and rural economies where demand for low prices remains strong. Reports estimate the broader township economy at about R900bn, while informal trade alone is valued at more than R200bn, according to Trade Intelligence.
Boxer’s model is built on high volumes and low prices. The group reported turnover of R46.7bn for the year to end February, up 12.3% on a comparable basis, with trading profit rising 17.3% to R2.64bn. It also improved margins to 5.7%, despite higher costs linked to expansion and its recent listing.
This scale translates to about R128m in daily sales, highlighting the retailer’s growing presence in everyday consumer spending.
Speaking to Business Day after the results, CEO Marek Masojada said the company’s growth reflects a consistent strategy in a volatile environment.
“We’ve had a very consistent history of growth in both sales and profitability,” he said.
Boxer’s expansion is continuing, with plans to open about 60 stores in the 2027 financial year, supported by capital expenditure of about R1.1bn. Masojada said as most hiring is tied directly to new stores, job creation is expected to remain strong in the current financial year.
“You probably see a similar type of number … most of the employment is taking place in the stores,” he said.
The retailer’s growth is being driven by a shift in consumer behaviour, with more shoppers moving toward discount formats. Boxer has leaned into this by cutting prices, offering bulk deals and expanding its private label range.
However, the strategy comes with risks. The company acknowledged it is navigating cost pressures on a month-to-month basis, particularly as fuel and logistics costs rise.
“Elevated oil and diesel prices mean that the trading outlook for [the 2027 financial year] is unclear,” the company said.
Meanwhile, competition is intensifying. Boxer faces pressure not only from large retailers but also from informal traders such as spaza shops, which compete on price and convenience in township areas.
Masojada acknowledged the highly competitive environment and the need to stay close to customers.
“It’s an absolutely competitive space … we compete on a day-to-day basis with larger retailers but also strong independents and smaller localised players,” he said.
Still, Boxer believes its expansion strategy will continue to deliver growth. The company says its relatively smaller footprint compared with rivals leaves room to grow without cannibalising existing stores.
Investors are also rewarding its performance. Since listing in November 2024, Boxer’s market value has surged to about R38.8bn — more than double that of its parent, Pick n Pay, currently valued at just R15bn — and well ahead of Spar Group, which is worth R11bn on the market.
The contrast highlights a broader turn in South African retail trends, in which growth is coming from value-focused formats embedded in local communities, rather than traditional large-format suburban stores.
For now, Boxer is betting that its focus on low prices, high volumes and expansion into underserved areas will continue to pay off, even as the broader economy struggles.
Shares rose more than 6% after the latest results, as investors welcomed the strong performance and a dividend payout.
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