By Ejiofor Alike with agency reports
Africa’s biggest grocer, Shoprite yesterday reported its first annual earnings decline in 19 years for the year ended July 31, due to currency devaluation in Angola, foreign exchange fluctuations in Nigeria and a lacklustre showing in its home South African market and elsewhere on the continent.
Reuters reported that South African retailers have struggled to lift earnings as elevated household debts, higher fuel prices and an increase in value-added tax squeeze consumer income.
The grocer, which has extensive operations elsewhere on the continent, took another hit this year as key markets in Angola and Nigeria battle chronic foreign exchange shortages and tepid economic growth.
Shares in Shoprite tumbled more than seven per cent to a level last seen in August last year.
The shares were…
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