Boxer Retail has reported an increase in grocery sales as its prices continue to fall. The discount retailer released its interim results for the 26 weeks ended August 30, 2026, showing a 6.3% increase in turnover to R24.1 billion. This growth, however, is slower than the 10.9% growth recorded in the second half of its previous financial year. The company attributes the slowdown partly to fuel price increases and deeper selling-price deflation.
Boxer's selling prices fell 2.4% during the reporting period, compared with national food and non-alcoholic beverage inflation of 2% over the same period. The retailer has warned that food inflation could return later than expected, despite months of declining prices. Boxer's CEO, Marek Masojada, noted that the company "continues to see strong demand for the value we offer, but is mindful of the broader economic environment, elevated oil and diesel prices, and the uncertainty around food inflation".
Masojada, who will retire at the end of February 2027 after more than three decades with the retailer, will be succeeded by Justin Galloway, currently head of supply chain operations. Galloway will take over as CEO on March 1, 2027. Masojada will remain with the company until November 2027 to support the transition. Boxer also announced that it has reached its 600-store milestone, with 24 new stores opened during the reporting period.
The retailer reported continued market share gains, although its results do not establish whether customers are switching from competing retailers or increasing their purchases. Despite falling selling prices and slower turnover growth, trading profit increased 8.1% to just over R1 billion, while profit before tax and capital items rose 10.6% to R774 million. Boxer's shares were down 2% after it issued mid-year results.
Boxer attributed improved profitability partly to stronger margins, economies of scale, and additional income from supplier services and retail advertising. The company cautioned that uncertainty around food inflation, together with elevated oil and diesel prices, continued to affect its outlook. Its internal selling-price movements reflect its product mix and do not necessarily represent changes in the cost of an identical household grocery basket.
The gradual increase in food inflation that Boxer had anticipated for the financial year had not yet materialised, although it still expects prices to rise later than originally forecast. In August, the retailer recorded selling-price deflation of 3.1%, compared with 2.1% in September. This means prices were still declining, but not as quickly as before.
Boxer expects improved turnover growth in the second half of its financial year, supported by new stores and stronger recent trading. The company is mindful of the broader economic environment and the uncertainty around food inflation. Key points include:
Key points
- Boxer's turnover increased 6.3% to R24.1 billion.
- Selling prices fell 2.4% during the 26 weeks ended August 30, 2026.
- Boxer warns of potential food inflation return later than expected.
