Latest news with #BoxerSuperstores
TimesLIVE
18-05-2025
- Business
- TimesLIVE
Boxer eyes growth in Gauteng and KZN
Boxer Superstores will double down on growing its presence in Gauteng and KwaZulu-Natal to close the gap with competitors who have been on an aggressive rollout in recent years. This week, the value grocery retailer, which was spun out of Pick n Pay and listed on the JSE in November last year, said it would spend R1.2bn in opening new stores and also on its new distribution centre in KwaZulu-Natal. It has 525 stores in total, including liquor stores, after opening 48 in the year to March. The retailer has almost doubled its outlets from 298 stores in 2020. Boxer CEO Marek Masojada said: 'In terms of the study we have performed, the provinces where we have the biggest gap are Gauteng and KZN. I guess you can say the Western Cape, as well, but our priority is on Gauteng and KZN. One of the reasons we created capacity in our supply chain is to support growth in those two regions. However, we continue opening stores in all other provinces as well.' Boxer opened a second distribution centre in Gauteng about 18 months ago, and early next year will open another one in KZN, which will 'give us capacity of over 100 new stores in the region', said Masojada. In total the retailer has six distribution centres, and once the KZN one comes on stream, Boxer will have capacity to add 200 superstores 'before needing our next distribution centre. This means no new distribution centres for at least four to five years. We have created a solid supply chain platform to grow our future store base,' said Masojada. The value grocer is planning another 60 stores (25 superstores and 35 liquor stores) in the 2026 financial year. Masojada said the challenge was finding space. 'We have people on the ground in every province working with different developers and property owners to unlock some of those opportunities. It's a mix between getting into existing shopping centres that might be taking on a second or third anchor, and greenfield developments as well.' Boxer wants to close the gap between its standalone liquor and grocery stores. It has 320 grocery stores and 175 liquor outlets. 'So, there's an opportunity to close the liquor store numbers faster than the super soil. Without mentioning our targets, we are looking to close that gap,' said Masojada. The company employs 32,000 workers after adding 3,000 new jobs through new stores opened in the year to March. The group is likely to continue converting some Pick n Pay stores into the successful Boxer brand. In the period under review, it took ownership of eight supermarkets and six liquor stores. Outside South Africa, Boxer has stores in eSwatini. Masojada said: 'Currently, we don't have the desire to go outside the borders of South Africa; we see enough opportunity internally. We do keep an eye on what's going on in Lesotho, a smaller market but one that talks to our value-conscious consumers.' All Boxer stores are corporate-owned, and it has no immediate plans to introduce a franchise model. The company will expand its private label products, which are a fifth of total turnover. While its rivals get more than 30% of total turnover from private labels, Masojada said 'at 20% at the moment, we do see a steady increase in that percentage, but we are not fixated on a number — we will be guided by the retail trend within our own stores and what customers are looking for'.
The Citizen
12-05-2025
- Business
- The Citizen
Is Boxer taking over, or is trouble brewing?
Boxer said its store growth has had a positive impact on job creation, as it has created 2 900 jobs in 52 weeks. Grocery retailer Boxer has expanded its footprint in South Africa and eSwatini by adding 48 net new stores during 52 weeks ending March 2025. However, its headline earnings for the period remained flat. Now operating 525 stores (320 Boxer Superstores, 175 Boxer Liquor stores, and 30 Boxer Build stores), the retailer plans to open 60 more stores, including 25 superstores and 35 liquor stores, by 2026. This is with the aim of making its discounted offers more accessible to a wider range of customers. Boxer made the announcement on Monday in its first-ever financial results since listing in November 2024. NOW READ: Most of Pick n Pay staff affected by closure of 32 stores will be redeployed How did Boxer perform? The retailer reported turnover growth of 13.2% to R42.3 billion during the 52 weeks and trading profit growth of 9.9% to R2.3 billion. 'This growth was 17.0% if excluding non-recurring non-cash gains on the derecognition of a Pick n Pay financial guarantee in the prior year. 'Comparing year-on-year performance on a pro forma 52-week basis, turnover increased by 10.4%, in line with pre-IPO market guidance, while trading profit increased by 7.0% (to R2.3 billion) and 14.0% when excluding the once-off non-cash gain in the prior year, detailed above.' Boxer's discount model Boxer has positioned itself as the 'People's Champion' due to its lean discount model, prioritising price and efficiency. The retailer said its store growth has had a positive impact on job creation, as it has created 2 900 jobs during the 52 weeks. Boxer now employs 31 906 staff members 'The retailer has invested in its Boxer Rewards Club loyalty programme and attracted over 1.9 million sign-ups since its launch in October 2024.' Marek Masojada, Boxer CEO, said, 'The results today are a testament to our powerful discount model underpinned by a deep understanding of our customers' needs.' NOW READ: Boxer CEO Marek Masojada to address Business@Breakfast event about resilience in retail Bad news Despite the growth, Boxer's headline earnings remained flat at -0.1%, reflecting higher net finance costs associated with the new external debt introduced as part of the pre-IPO balance sheet restructuring, alongside an increase in the effective tax rate, which offset the positive impact of the operational performance. Headline earnings are used to measure the company's profitability on a per-share basis. Boxer's trading costs also grew to R7.06 billion, from R6.08 billion in the previous financial year. Although Boxer's profit margin for the period came in well ahead of the 5.0% target, the retailer expects some pressure on margins going forward. This is due to the extra ongoing costs of being a publicly listed company, some short-term losses as the new Tongaat DC starts operating, and increased spending on product pricing to stay competitive. Shareholders The retailer informed shareholders that the number of Boxer shares is expected to increase by approximately 34% in the next financial year, following the IPO. This will lower earnings per share and is likely to result in a decline in headline earnings per share compared to the 2025 financial year. Boxer has not declared a final dividend for the financial year 2025, and it maintains its intention to pay out 40% of headline earnings per share from the financial year 2026. 'Boxer intends to declare an interim financial year 2026 dividend at the time of the first half of the year result.' NOW READ: Will Boxer listing on the JSE save Pick n Pay?
