Since its inception in 2019, Checkers Sixty60, the on-demand grocery delivery service by Shoprite, has emerged as a lucrative venture, catapulting the company's growth to new heights. Despite its undeniable success, the financial specifics of Sixty60 remain shrouded in secrecy, leaving investors and analysts curious about its true economic impact.
In the latest financial report released by Shoprite for the 26 weeks ending on December 31, 2023, the retail giant showcased robust performance figures. With a remarkable 13.9% increase in sales, amounting to R121.1 billion, Shoprite's core South African supermarket segment saw a surge of 14.6%, reaching R97.5 billion in sales. Among the standout performers were Checkers and Checkers Hyper, which experienced a significant 13.7% sales growth, totaling R38.5 billion during the same period.
A pivotal factor driving this exponential growth was the stellar performance of Checkers Sixty60, which witnessed a staggering 63.1% increase in sales within the six-month timeframe. Despite its substantial contribution to Shoprite's revenue stream, the company has remained tight-lipped regarding the exact financial metrics associated with Sixty60's operations. Shoprite CEO Pieter Engelbrecht, in the interim results presentation, asserted the profitability of Sixty60, affirming its status as the leading grocery app in South Africa, boasting over 4.5 million downloads and operating across 505 locations.
Engelbrecht's statements, however, failed to assuage concerns surrounding the lack of transparency regarding Sixty60's financial performance. Despite claims of profitability, Shoprite has refrained from disclosing revenue or profit figures associated with the service, leaving investors and stakeholders in the dark. During the interim results webcast, Engelbrecht evaded direct inquiries regarding Sixty60's revenue, further fueling speculations regarding its economic significance.
In the absence of official figures, analysts and investors have resorted to alternative methods to gauge Sixty60's impact on Shoprite's financial landscape. While the service has undoubtedly bolstered the company's revenue streams and market presence, the lack of transparency raises questions regarding the sustainability and long-term viability of Sixty60 as a revenue-generating entity.
Despite the veil of secrecy surrounding Sixty60's financials, its undeniable success underscores the evolving landscape of retail and consumer behavior in South Africa. As e-commerce and on-demand services continue to reshape the retail landscape, the true potential of ventures like Sixty60 remains a subject of intrigue and speculation, leaving stakeholders eagerly awaiting further insights into its financial performance.
Comments