Boxer continues to defy a tough trading environment, growing market share and expanding rapidly, with its seventh distribution centre positioning it for even faster rollouts in future.
The retailer’s biggest growth drivers remain groceries and liquor. About 58% of Boxer’s superstores now include liquor outlets, up from 53% a year ago. In the six months to end-August, the group opened 25 new stores and says it could potentially double in size over the next seven to eight years.
CEO Marek Masojada says it is difficult to pinpoint exactly where the market share gains are coming from — Boxer doesn’t have access to competitor data — but it’s likely to be from the informal and lower-end formal retail sectors. Operating in the value segment, Boxer focuses on a limited range of about 3,000 products, of which about 2,000 are dry goods.
For the 26 weeks to August 31 2025, turnover rose 13.9% to R22.5bn, with like-for-like sales up 5.3%. “Like-for-like remains our daily focus and that is the barometer of health in our business,” says Masojada.
Food price inflation over the period was negative 0.7%, mainly due to a stronger rand, lower import costs on commodities such as rice and a function of consumers buying more on promotion.
While Boxer is strongest in KwaZulu-Natal, where it was founded, there is significant growth potential in Gauteng and the Western Cape, and room for further expansion in KZN. A pilot project offering online bulk sales to informal traders in KZN is also being rolled out in Gauteng and the Eastern Cape. “It’s not a big earnings contributor — more of a service as we develop our online presence.”
Trading profit grew 15.1%, outpacing turnover growth and reflecting efficiency gains and cost control. The trading margin held steady at 4.1%. Masojada says this is “excellent”, given that the company absorbed additional listing-related costs and took on board functions previously handled by the Pick n Pay Group, from which it disengaged and listed separately.
Since listing last November, Boxer has also taken on long-term debt, creating some interest expense in this period against interest income in its base year.
The group has seen an increase in percentage of sales being linked to a new rewards card. This is evidence of a change in consumer patterns, with bigger baskets and increasing spend among members.
Anchor Capital analyst Steph Erasmus says management’s approach is about driving absolute profit growth while keeping margins steady. “The group delivered a strong set of results,” he says. “The risk with fast expansion is opening stores for the sake of it, but that’s not what we’re seeing here — the new stores are performing well. I think this business has upper-teen earnings growth potential.”
Erasmus says Boxer’s existing distribution centre footprint should comfortably support its rollout plans for the next three to four years. “So there’s no need for major new DC investment in the near term.”
The retailer is also deepening customer engagement through its Boxer Rewards Club, which has signed up 2.3-million members. Rewards participation has led to larger basket sizes, more frequent shopping, and greater insights into consumer behaviour — forming the basis for Boxer’s new data monetisation initiative.
Masojada says the first year as a listed entity has gone relatively smoothly, with one unexpected upside being increased recognition from landlords and suppliers. “Maybe people take you a bit more seriously when they see you as a formidable player, which may have been hidden before.”
Part of Boxer’s opportunity lies in its smaller-format stores, which are increasingly being added as second or third anchors in established shopping centres.
Boxer now operates 547 stores across South Africa and Eswatini, up 11.9% year on year, and is on track to open 60 stores for the full year.
Commentary from Trade Intelligence notes that the performance is particularly impressive because it was delivered amid 0.7% product deflation, indicating strong volume growth and market share gains.
Andrea Slabber, lead retail expert at Trade Intelligence, says though Boxer believes a big portion of share gain is from the informal trade, feedback from suppliers also indicates that where Boxer stores are thriving, there has been a slight shift from Shoprite to Boxer. “So it would be fair to say they’re gaining share from other retailers.”
The group is focused on maintaining sales momentum for the rest of the financial year, with success dependent on strong Black Friday and festive season trading. Boxer will leverage its loyalty card members and innovative promotions to drive volume and value. Revenue generated from data monetisation will be reinvested into lower prices for shoppers. “The team appears well-prepared and focused on achieving its targets.”
Slabber notes that liquor is a priority format for the group for growth. By the half year, Boxer had opened 25 of the 60 planned new stores for the reporting period and 15 of these are liquor stores. “Boxer highlights the efficiencies they gain with liquor stores working off the infrastructure of the superstores, strengthening their overall financial model.”
Boxer weighs in with a market cap of R36bn, and its share price is up 21.8% in the year to date. It’s significantly bigger in terms of value than Pick n Pay at R22.9bn, whose share price is up just over 2% in the year to date. Shoprite is down 1.4% but remains the behemoth of the sector, with a market cap of R171bn.
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