SA’s rugby win gives boost to nation’s supermarkets

South Africa’s rugby team united the nation with a thrilling World Cup win earlier this month — and a stuttering economy may be reaping the benefits.

The sight of Siya Kolisi becoming the country’s first black player to lift the trophy sparked a renewed rush to the shops, according to Graham O’Connor, chief executive officer of supermarket chain Spar. The positive effect could ripple through the next six months of trading, he said by phone on Wednesday.

Read: South African pride erupts over Rugby World Cup win

South Africa’s rugby victory has lessons for all of us

The positive vibes emanating from South Africa’s 32-12 victory over England come against a backdrop of meager economic growth and an unemployment rate at the highest in at least 11 years. Consumer confidence dropped to the weakest level since 2017 in the third quarter, posing a challenge for the country’s retailers.

“Fundamentally not much has changed,” said O’Connor, referring to the economy. “But sentiment has changed after the World Cup.”

Spar has almost 2 350 stores across southern Africa, and the retailer’s outlook is “pretty positive” after discounts and store upgrades helped boost overall profit in the year through September, the CEO said. The shares climbed as much as 7.2% in Johannesburg after the company announced full-year earnings, the most in almost four years.

Read: Spar posts profit rise despite consumer pessimism

Southern Africa sales of food and liquor rose by 8.1% for the full year. The company also sees good prospects in the new market of Poland, where Spar has all but completed the purchase of a majority stake in Piotr I Pawel.

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Source: moneyweb.co.za