Business
Why Boxer’s rapid expansion is reshaping how South Africans shop
Boxer is quietly everywhere now
If it feels like a new Boxer store is opening every time you drive through a growing suburb or township, you are not imagining it. The value retailer has been rolling out stores at speed, and the numbers show a business that is very much in growth mode, even while many South African households remain under pressure.
In its latest trading update covering the 48 weeks to 1 February, Boxer confirmed that it is on track with its ambitious financial year 2026 expansion plans. The retailer previously set its sights on opening 60 new stores for the year, a mix of supermarkets and liquor outlets, and it has already made a strong start.
A fast start to an aggressive rollout
By the halfway mark of the financial year, Boxer had opened 25 new stores. These included nine large Boxer Superstores and 15 Boxer Liquor outlets, with the remaining openings still to come as the year progresses.
The liquor expansion is moving slightly more cautiously. Management has made it clear that future liquor store openings depend on securing outstanding licences, which remains one of the biggest practical hurdles in this part of the retail market.
Even so, the pace of expansion reflects strong confidence from the group and its backers. Boxer has positioned itself squarely in the value segment, offering affordable pricing in areas where price sensitivity matters most.
Turnover growth despite a tough consumer climate
Boxer’s rapid store rollout has gone hand in hand with solid sales growth. Over the full 48-week period, turnover rose by 11.9 percent, with like-for-like sales increasing by 3.9 percent.
Growth did ease slightly towards the end of the period. In the final 22 weeks, turnover growth slowed to 9.8 percent, while like-for-like sales rose by 2.4 percent. According to the group, this was not a sudden slump but rather a reflection of timing and trading conditions.
September and October delivered particularly strong results, followed by a softer November. December and January then showed steady improvement again. November’s dip was largely blamed on an extended Black Friday period that squeezed margins and a strong comparison base from the previous year.
Winning market share when it counts
One of the clearest signs of Boxer’s momentum is market share. Independent data from NielsenIQ shows that the retailer consistently gained market share throughout the period, even as competition in the grocery sector intensified.
Interestingly, selling price inflation for the period was negative, sitting at minus 1.0 percent on a volume held constant basis. This points to continued price investment and value-driven pricing, a strategy that resonates strongly with cash-strapped consumers.
On the profitability side, Boxer remains firmly on track. Trading profit grew by 15.1 percent in the first half of the financial year, reaching R931 million, reinforcing that growth is not coming at the expense of margins.
Why Boxer’s rise matters right now
There is a broader story here than just store numbers and percentages. Boxer’s expansion says a lot about how South Africans are shopping in 2026. As households prioritise essentials and hunt for better value, retailers that understand local communities and pricing realities are pulling ahead.
On social media, shoppers regularly praise Boxer for affordable staples and accessible locations, particularly in areas where traditional supermarkets are thin on the ground. For many communities, a new Boxer store is not just another retailer; it is a reliable source of everyday basics close to home.
Looking ahead, the group expects full-year sales growth to come in slightly ahead of current reported figures, helped by a softer comparison base later in the year. If momentum continues, Boxer’s footprint is only set to grow larger.
For now, one thing is clear. Boxer is no longer quietly expanding. It is actively reshaping South Africa’s value retail landscape, one store at a time.
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Source: Business Tech
Featured Image: Daily Investor
