Shoprite is seeing its online grocery business become an increasingly important source of growth, with Sixty60 sales climbing 33.4% in the four months to October 2026 as the retailer extends its delivery service beyond its premium supermarket network.

The expansion comes as South Africa’s largest food retailer seeks to capture more online grocery spending through its different store formats. The move into selected Shoprite outlets last year has widened Sixty60’s potential customer base beyond the Checkers shoppers who initially drove the platform’s growth.

Sixty60 generated R25.5 billion($1.5 billion) in sales during the financial year ended June 2026. Its latest growth rate puts the platform on course to exceed R30 billion($1.8 billion) in annual sales during the 2027 financial year if it sustains its current performance.

Online grocery business gains scale

Launched in late 2019 through a mobile application serving Checkers stores, Sixty60 has developed into a significant part of Shoprite’s digital retail strategy.

Its expansion into Shoprite outlets represents an important shift in the platform’s reach, giving the group access to customers across different income segments and supermarket formats.

The 33.4% increase also stands out against the group’s broader supermarket performance, highlighting the growing contribution of digital shopping to its retail operations.

Shoprite’s core South African supermarket operations recorded 7.1% sales growth during the four-month period, covering Shoprite, Usave, Checkers, Checkers Hyper and LiquorShop.

Internal selling price inflation stood at 0.7%, compared with the previously reported 0.6% for July 2026. Price deflation across Shoprite and Usave indicates that the retailer’s sales growth was supported by higher purchasing volumes rather than substantial price increases.

The group’s overall sales increased 6.4%, although the performance was affected by a reduction in its OK Franchise business following the closure of 51 stores.

Franchise closures weigh on group performance

The closures followed the mutual termination of a previously disclosed franchise agreement, resulting in a 1.5% decline in sales for the affected period. Shoprite’s OK Franchise division now operates 578 stores. Despite the reduction in its store network, the company reported positive trading profit growth in the division.

Analyst Alec Abraham of Otto1890 described the supermarket division’s performance as strong given the limited 0.7% increase in basket selling prices. However, the group’s 6.4% overall sales growth came in slightly below market expectations, partly reflecting the impact of the franchise closures.

Pharmacy competition adds pressure

The operational update also highlighted intensifying competition in the pharmacy market, adding another challenge to the retailer’s operating environment. Shoprite’s shares declined by slightly more than 3% by midday Friday following the release of the trading figures.

Nevertheless, Sixty60’s rapid expansion provides the retailer with an increasingly important growth channel. Its ability to extend the service across more store formats could strengthen its position in South Africa’s online grocery market as it pursues higher digital sales in the current financial year.