More grocery stores doesnot mean higher turnover
The number of stores that a grocery retailer has does not necessarily determine the number of consumers that will spend their money at the retailer's outlets.
This is according to a study conducted on large grocery retailers in South Africa by consulting firm Eighty20 for 2005-06.
The study showed that though Spar had the most stores, at 1236 during that period, it was not the biggest player in the market when it came down to rands and cents.
Consumers voted with their wallets. Pick 'n Pay, with 706 stores at that time, had the highest yearly turnover of over R31billion.
The Shoprite group was a close second with a turnover of a little more than R30billion. Shoprite had 926 stores countrywide.
The Spar Group was ranked third among the country's large grocery retailers, with a yearly turnover of R17billion.
Woolworths, which goes against the usual South African trend of specialising in either food or clothing, had the lowest number of stores, with a total of 309 stores, but had the highest growth in new stores.
A total of 35 new Woolworths shops flourished across the country during the time of the study.