Boxer reports maize meal, rice and flour prices decline as food deflation deepens
· Citizen
Discount retailer Boxer says South Africans continued to benefit from lower food prices during the 20 weeks to 19 July, with sharp declines in the cost of staples such as maize meal, rice and flour driving food deflation across its stores, even as households remained under financial pressure.
The retailer, in its trading statement released on Tuesday morning, said its internal selling price inflation, measured on a volume-held constant basis, was -1.9% during the period, marking a steeper decline than the -0.7% and -1.6% deflation reported in the previous two reporting periods.
Visit amunra-online.pl for more information.
Boxer attributed the deeper deflation to double-digit price declines in key commodity categories.
Boxer’s turnover
Boxer highlighted that its turnover for the period grew by 7.2%, with like-for-like growth of 2.2%.
This is lower than the 10.9% turnover growth, with 3.7% like-for-like recorded growth in the second half of financial year 2026.
Lower prices did not dent demand, with Boxer reporting positive like-for-like volume growth for a third consecutive year, suggesting shoppers continued to buy more items despite a constrained consumer environment.
Boxer remains positive
The retailer said that, as a consequence of both strong other trading income growth and tight margin control, management’s current assessment is that Boxer is on track to maintain its first half of 2027 trading profit margin at the level of the first half of financial year 2026.
Over the 20-week period, Boxer opened 19 new stores, consisting of six Superstores and 13 liquor stores.
“Boxer has a strong 2027 financial year store opening pipeline, and management remains confident the group will meet its previously communicated FY27 store rollout target of 25 Superstores and 35 liquor stores.”
Outlook
The retailer expects turnover growth to accelerate over the latter part of the 2027 financial year, due to an anticipated uptick in selling price inflation and an improved turnover contribution from new stores, given that the majority of the store openings are scheduled for the second half of the financial year.