Boxer, a South African discount grocery chain majority-owned by Pick n Pay, announced on Monday that it anticipates sales growth in the low teens for its current financial year. The retailer attributed this outlook to a more subdued inflationary environment and intensifying competition in the food retail sector.
Operating across 525 outlets in South Africa and Eswatini, Boxer faces stiff competition from major discounters such as Shoprite’s Usave and SPAR’s SaveMor, as well as from independent local retailers. CEO Marek Masojada noted that South African consumers remain under considerable financial strain and are increasingly focused on value. “Our consumers are looking for value every day and we have a very astute consumer that really does their homework before they choose where they’re going to buy their groceries,” he said in an interview with Reuters.
For the 53 weeks ending 2 March, Boxer reported a 13.2% rise in turnover to 42.3 billion rand ($2.32 billion), with like-for-like sales increasing by 5.6%. Promotions played a significant role in this growth, encouraging customers to opt for larger pack sizes in a bid to maximise value. Masojada also confirmed to investors that a substantial portion of the company’s turnover is driven by promotional activity.
Looking ahead to the financial year ending April 2026, Boxer said that both lower inflation and the competitive market landscape are expected to keep sales growth in the low teens. The retailer also has ambitious expansion plans, aiming to double its turnover over the next five years, beginning with 60 new store openings during the current financial year.
Despite its turnover growth, the company reported an 11.8% decline in headline earnings per share to 413.76 cents. Boxer attributed this drop to the issuance of 157.4 million new shares at the time of its listing in November.
Trading profit rose by 9.9% to 2.3 billion rand, with a trading margin of 5.5%. However, the company signalled ongoing moderate pressure on margins due to various factors, including the costs of being publicly listed, initial losses at its new Tongaat distribution centre, and selective reinvestment of gross margins to maintain competitive pricing.