As South Africa’s fastest-growing discount supermarket chain, Boxer Retail opened 19 new stores were opened, consisting of 6 Superstores and 13 liquor stores in the 20 weeks to July 29, 2026.
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Boxer Retail’s share price fell 3.3% on Tuesday morning after the value retailer said its trading margin was likely to be flat in the 20 weeks to July 19 due to selling price deflation across its shopping basket.
The JSE-listed Pick n Pay subsidiary stated in a trading statement on Tuesday that they were operating in an environment of “slowing momentum in a highly constrained trading environment.”
The reported deflation resulted from deflation across key commodity categories, particularly maizemeal, rice, and flour, which all experienced double-digit deflation during the period.
The share price was trading at R73.18 on Tuesday morning, 4.8% higher than the R69.89 it was trading at a year ago.
Turnover for the period grew 7.2%, with like-for-like growth of 2.2%. This represents a slowdown compared to the 10.9% turnover growth (3.7% like-for-like) recorded in the second half of the 2026 financial year.
Like-for-like volume growth - like-for-like turnover less internal selling price inflation - remained positive, sustaining the trend of the past three years.
Boxer's market share increased over the period, based on Boxer's calculations using data reported by NielsenIQ, a global consumer intelligence company. Boxer aims to deliver the lowest basket prices compared to its competitors through a curated range of 3,000 essential food and grocery items, including market-leading brands and exclusive Boxer labels.
Internal selling price inflation, as measured on a volume-held-constant basis, was -1.9%, representing a further slowdown from the -0.7% and -1.6% previously reported for the first half of the 2026 year and the second half of 2026, respectively.
“As a consequence of both strong other trading income growth and tight margin control, management's current assessment is that Boxer is on track to maintain its trading profit margin for the first half of 2027, at the same level as in the first half of 2026,” the directors said.
During the period, 19 new stores were opened, consisting of 6 Superstores and 13 liquor stores. The group has opened a net average of 50 stores over the past three years.
“Boxer has a strong 2027 store opening pipeline, and management remains confident the group will meet its previously communicated 2027 store rollout target of 25 Superstores and 35 liquor stores,” the directors said.
“Boxer expects turnover growth to accelerate over the latter part of 2027, due to an anticipated uptick in selling price inflation and an improved turnover contribution from new stores, given that the majority of the 2027 store openings are scheduled for the second half of the financial year.”
On July 1, Boxer and FNB eBucks announced plans to expand the access of its 99 cents bread benefit, one of the country’s most practical savings initiatives. From July 1, FNB Easy, Aspire, and Prime Life customers who shop at Boxer qualify for the 99 cents bread benefit, for up to four loaves of bread per month.
Since launching the 99 cents bread initiative in September 2024 with Pick n Pay, FNB had seen a strong impact, with over 6.3 million loaves issued and more than R9.6 million in direct savings delivered to customers.
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