Shoprite, which has retail outlets across the continent, has now taken control of the five supermarkets and one distribution centre on the Indian Ocean island with effect from October 28.
The group said the acquisition was in line with its regional expansion programme outside of SA's borders. The group operates 72 Shoprite outlets in 13 African countries.
Shoprite MD Whitey Basson said the group hoped to be in most sub-Saharan countries by 2005. He said Shoprite had already bought land in Ghana, and was set to start operating in Angola next year. He said Gabon and Nigeria were also being looked at.
In the Angolan capital, Luanda, the group has begun construction on a R113m combined Shoprite and Megasave distribution centre.
The stores in Madagascar, of which four are based in Antananarivo and one in Tamatave, will trade under the Shoprite brand.
The group said its expansion programme in Africa had also resulted in the creation of an export market for SA producers and manufacturers.
During the past year, Shoprite exported stock to its outlets trading outside this country to the value of more than R429m.
Aside from moving into Africa, Shoprite has recently ended its battle with Visa and MasterCards over the use of debit cards.
Basson said if Shoprite had to accept the initial deal, it would have cost the consumer R90m. Under the new agreement there would no cost to consumers.
Debit cards would now be accepted at Shoprite, Checkers and Checkers Hyper stores at the 348 stores across the country.
Shoprite Checkers deputy MD Carel Goosen said: 'Online debit cards offer consumers convenience, security and savings, and Shoprite Checkers believes that its customers also deserve those benefits.'
In the six months to June Shoprite increased revenue 12,8% to R22,11bn while operating profit rose 28,4% to R522,2m.
Shoprite's share price rose 10c to R7,05, with 163,603 shares traded yesterday.
Business Day
Publisher: Business Day
Source: Business Day

