Angolan turbulence weighs on Shoprite

The poor performance of its Angolan operations weighed heavily on the international sales of South African supermarket chain Shoprite during the 12 months to June 2018. In rand terms, Shoprite supermarkets outside of South Africa saw turnover decline by 7.0%.
Excluding Angola, Shoprite´s international supermarkets saw sales growth of 3.0% year-on-year. In Angola, a “normalisation of performance” followed “65.9% compound growth in turnover over the prior two years and the 50.2% devaluation of the Angolan kwanza since January 2018,” according to the company.
However, the outlook for the Angolan grocery retail market is brightening. The annual rate of consumer price inflation fell below 20% for the first time in two years during May 2018, with the kwansa’s foreign-exchange rate stabilising and the supply of foreign currency normalising as the price of crude oil (the country’s main export) recovered.
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