Shoprite has announced a rebrand of its Checkers Food Services (CFS) business in South Africa, which provides wholesale services in Gauteng and the Western Cape.
The rebranded firm is now called Red Star Wholesale Catering Services and expanded its delivery network to include KwaZulu-Natal, specifically Amanzimtoti, Ballito, Bluff, Chatsworth, Durban CBD, Durban North, Hillcrest, Pinetown and Umhlanga.
The firm provides free delivery on orders over R1,000 (€50.31) and delivers six days a week, from Monday to Saturday, using refrigerated, temperature-controlled vehicles.
As well as standard food and drink products, the group also offers a private label product range, CaterClassic, which features meat, condiments, tinned food, dried fruit and nuts SKUs.
Red Star Wholesale customers can also apply for a Business Buying Card that entitles them to 2.5% off all purchases any Shoprite, Checkers, and Checkers Hyper supermarkets, as well as LiquorShop and House & Home stores.
In the six months to 1 January, Shoprite reported a 16.8% increase in sales at group level, while supermarket sales in its core South Africa market increase by 17.5%. Its South Africa business accounts for four fifths (80.1%) of group sales.
However, the group said that its operating performance was marred by 'chronic power outages' throughout South Africa, which has prompted it to purchase diesel to power generators.
"We are disappointed that as a result of the diesel expense, to mitigate the impact of load-shedding during the period, we are not reporting the level of profit and dividend growth normally associated with such a notable achievement in terms of sales growth," Pieter Engelbrecht, chief executive, commented in March. "The ongoing cost to our economy in terms of growth and investment is devastating, as is the impact on the everyday lives of South Africans, most of whom are already dealing with considerable hardship.
© 2023 European Supermarket Magazine – your source for the latest supply chain news. Article by Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.