Boxer keeps 1,000-store expansion target in South Africa

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Boxer 1,000-store expansion

Highlights

Boxer opened 32 new stores by September 2023 and targets 60 new outlets this year, maintaining its goal of 1,000 stores by 2031.
Over half of the 24 first-half openings were Liquor outlets, with management prioritizing Liquor–Superstore co-location to drive basket growth and improve returns.
Two Pick n Pay store conversions to Boxer in the first half saw turnover gains, with a third converted store set to open in Hillcrest later this month.

Expansion pipeline and opening pace

As reported by Moneyweb, Boxer added 24 stores in the first six months to 30 August, with openings skewed toward the second half when festive trading and Black Friday support demand. By the end of September, the total number of new stores had risen to 32, with management planning a further acceleration into October.

The retailer has doubled its store base in six-and-a-half years and, ahead of its 2024 listing, set out an ambition to double its then footprint of just under 500 stores within six to seven years, taking the target to about 2031. CEO Marek Masojada says that goal remains achievable, adding that expanding by another 200 Liquor stores and 200 Superstores from the current base is not a stretch, although each property opportunity still has to meet pricing requirements.

Masojada says Boxer is targeting 60 to 70 new stores a year in the medium term and remains on track to open 60 this year. He says the future pipeline has strengthened, with approved sites already identified to support Superstore expansion for at least the next six years, while sites needed for FY28 have already been secured or are in legal review or active development.

Format mix and conversion opportunities

Management says the group is not pursuing store numbers at any cost and would prefer stronger turnover growth from a smaller number of high-quality stores if that produces better returns. More than half of the 24 stores opened in the first half are Liquor outlets, as Boxer works through a catch-up opportunity to place these alongside supermarkets after historically not always doing so.

Masojada says the liquor licence approval process has become more predictable, although some catch-up work remains. The preferred model is to open a Liquor outlet at the same time as a new Superstore, which could improve format alignment and support basket growth.

Two of the first-half openings are conversions from Pick n Pay stores, in Ficksburg in the Free State and Palm Ridge in southern Gauteng. Boxer says both sites were underperforming under the Pick n Pay banner and have seen turnover improve since conversion, while a further converted store is due to open later this month in Hillcrest near Durban at Christians Village Mall, where the site sits next to the main taxi rank and is expected to bring a shift in customer demographics.

Our earlier article on retail stocks noted signs of stabilization after a correction, with technical indicators pointing to a potential short-term relief rally in the SPDR S&P Retail ETF (XRT). It also highlighted that retail has still lagged the broader market, while individual names showed a split picture—stronger technical setup in Amazon versus a counter-trend rebound case for Home Depot after steep losses.

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