South African grocery discounter Boxer Retail has increased its turnover by 6.3 per cent to R24.1 billion in the first half of its 2027 financial year, as the retailer expanded its network to 600 stores and grew profits despite mounting pressure on consumer spending.
For the 26 weeks ended 30 August 2026, trading profit climbed 8.1 per cent to R1 billion, while headline earnings rose 9.1 per cent to R565 million. Profit before tax and capital items increased by 10.6 per cent to R774 million, reflecting improved profitability amid a challenging retail environment.
The results highlight Boxer’s strategy of attracting cost-conscious shoppers through competitive pricing and expansion into underserved communities, Brandspur Brand News reports. The company said it continued to gain market share as households faced pressure from living and transport costs.
Like-for-like sales increased by 1.4 per cent, while implied like-for-like volume growth reached 3.8 per cent, suggesting customers bought more goods even as price movements weighed on revenue growth.
Boxer’s internal selling-price deflation deepened to 2.4 per cent during the period, compared with 0.7 per cent in the corresponding period a year earlier and 1.6 per cent in the second half of its 2026 financial year. The rate was below the 2 per cent food and non-alcoholic beverage inflation reported by Statistics South Africa for the period.
Chief executive Marek Masojada said the retailer would continue investing in affordability while expanding its presence and controlling costs. The company also reported an improvement in trading momentum during the four weeks after the reporting period, although it warned that fuel costs and food inflation remained uncertain.
Boxer opened 24 stores during the six-month period, comprising nine Boxer Superstores and 15 Boxer Liquor outlets. By 30 September, it had opened 32 stores year to date and remained on track to add 60 outlets during the 2027 financial year.
The retailer is also developing revenue streams beyond conventional grocery sales. Other income grew by 34.7 per cent to R260 million, supported by value-added services, its B-Inside supplier portal and an initial contribution from B-Media, its retail media business launched earlier in the financial year.
Operating costs nevertheless increased. Trading expenses rose 10.2 per cent to R4.2 billion, reflecting store expansion as well as higher energy and advertising costs. A 0.5 percentage-point improvement in gross profit margin helped lift the trading profit margin by 0.1 percentage points to 4.2 per cent.
Boxer’s financial position also strengthened, with net cash excluding lease liabilities rising to R2.3 billion from R700 million at 1 March 2026. Headline earnings per share increased by 9.2 per cent, while the company declared an interim dividend of 49.93 cents per share, equivalent to a payout ratio of 40 per cent of headline earnings per share.
With its store network now at 600 outlets, Boxer plans to maintain its focus on low prices, further expansion and cost management in the second half of the financial year. Its performance will depend on sustaining customer demand while balancing affordability with the rising costs of running a growing retail business.
