After crunching the numbers from Boxer’s inaugural results last week (see our summary here), we take a closer look at other deets presented by the Group on the occasion:

Expansion: In the last five years, Boxer’s store count has grown from 298 to 525 currently, with 48 new stores opened in FY2025. Going forward, growth will be prioritised in GP and KZN to face up to growing competition in these regions. R1.2bn will be invested in new stores and a new KZN DC, which will service over 100 new stores in that green province.

Formats: With 320 grocery stores versus 175 liquor, the Group aims to close the gap between the two formats at a faster rate. Boxer is also likely to continue converting some Pick n Pay stores to the Boxer brand. Perhaps we will receive greater clarity on this from Pick n Pay’s results next week.

Loyalty: Launched in October last year, the Boxer Rewards Club has already signed up 1.9 million members. Thanks to a partnership with Capitec, rewards members who pay with Capitec cards enjoy special discounts, such as its current campaign where shoppers receive 50 B rewards (equal to R50) when purchasing a 5kg Goldi or County Fair IQF chicken pack.

Comment: Solid plans from a solid business, showing us that plain, no-frills retailing will reap the same, if not greater, rewards than retailers which overcomplicate their value proposition.

Fact: in South Africa, cash is (still) king. But according to FNB, the rise in popularity of stokvels in 2025 is thanks to digitisation. Inflows into stokvels in 2025, says FNB, are mostly coming through mainstream banks, thanks to banking products that offer safer means for stokvels to manage and contribute to their savings. And FNB stokvel accounts grew +66% YoY to more than R13bn at the end of 2024 (versus R8bn in 2023). The National Stokvel Association agrees, saying that its members are using banking apps for lower-value transactions more and more. But it’s not just about bank accounts – many stokvels are starting to invest in shares and unit trusts, proof that the traditional mistrust in the big institutions is slowly shifting. Ti’s May update of the Formal Independent Channel Report also touches on stokvels and the role banks play in serving them, as well as trends, shopper needs and evolving dynamics in this fascinating FMCG channel. See more on the report here.

Famous Brands’ results to end Feb are out, and while quick service restaurants aren’t our main area of focus, we like to track it as an indicator of where South Africans are spending their money. With revenue +3.2% versus last year, Famous Brands noted that spending is under pressure, with consumers prioritising essentials and value for money. Its retail division (selling products to our major retailers) took a significant hit, with revenue down 6.6% due to lower sales of potato chips as a competitor returned to the scene after a stock shortage in 2024. Its Leading Brands division (Steers, Debonairs, Fishaways, Mugg & Bean, Wimpy and Milky Lane) were +1.4%, performing better than its sit-down restaurants as demand for dining out dropped. 122 new restaurants opened during the year, including more drive-thrus which are growing in popularity with consumers trying to cut down on delivery fees. Next, over to Shoprite, which is rolling out SA’s first fully recyclable 7kg potato pocket. While commendable, what we find fascinating about this story is not so much the recyclable bag itself, but how it was developed. The challenge was taken up in-house by a team of five employees who, as part of a leadership development programme, mapped the entire value chain and engaged with mills, packaging companies, recyclers and even informal waste pickers to come up with a solution that is fully recyclable in South Africa. The full story makes for an absorbing read – you can find it here.

The new UK-EU trade deal reached on Monday this week has been welcomed by major business groups in the UK, with Morrisons' CEO Rami Baitiéh saying that it would “ease a source of pressure on food prices”. The deal sets out post-Brexit trade relations and includes (among other things) the renewal of EU fishing boats’ access rights to UK waters, as well as allowing the UK to sell raw burgers and sausages back into the EU for the first time since Brexit. The agreement “has the potential to significantly reduce costs and bureaucracy”, said an Asda spokesperson, and while it has generally been welcome by the retailers, some have raised concerns that cost savings may not be passed on to shoppers. Still at Morrisons, the retailer is expanding its ‘More Card’ loyalty scheme with the launch of ‘More Partner Points’, where loyalty members can now earn extra points when buying clothes, gifts, or booking a holiday with over 300 participating brands and retail partners. And last but most certainly not least, over to the US, where Walmart has been rapped over the knuckles by President Trump, who instructed the retail giant to “eat the tariffs” and stop blaming the trade war for rising prices. Walmart responded by saying that it would do its best to keep prices low for as long as possible. “I’ll be watching, and so will your customers!!!” said the Don.

More results, this time half-year numbers to end March for Astral Foods, where operating profit dropped a significant 51% due to lower selling prices and higher input costs. This meant the business was forced to absorb the cost of producing chicken rather than pass it on to consumers. A cybersecurity incident didn’t help matters either, costing the company R20m in downtime and expenses to catch up production. Looking to the second half of the year, Astral warns that bird flu remains a risk, as well as low prospects around SA’s economic growth and preferential trade being under threat due to the uncertainty around geopolitics and AGOA.

To the delight – no doubt – of producers, Government has announced plans to release new draft regulations governing the sale of foods containing cannabis and hemp, following the backlash and criticism received on its blanket ban on such foods earlier this year. The previous regulations, which were withdrawn in April, banned the import, manufacture, and sale of all cannabis-based food products, including hemp, hemp seed oil, and hemp seed flour, popular ingredients in many foods these days thanks to their nutty flavour and high nutritional value. They also contain very low levels of THC, the psychoactive compound found in other varieties of cannabis that the ban sought to eliminate. Earlier this month, Minister of Health Aaron Motsoaledi said the department would draft new regulations and publish them for public comment “soon”.

Busy professionals, procrastinating students and e-sport gamers alike will be pleased to learn that after a successful debut in India, Nepal and Vietnam, Charged – Coca-Cola’s new sparkling strawberry flavoured caffeinated drink – will be making its way to our shores. The 500ml can is available at retailers nationwide and is easily recognisable on shelf thanks to its thunderbolt pack design. To pharma now, where Adcock Ingram has been found guilty of a trademark infringement in relation to its newly launched painkiller, Lenbucod. Adcock was taken to court by rival Aspen which argued that the name of the new drug was too similar to Aspen’s Mybucod, which it trademarked back in 2007. The court agreed, prohibiting Adcock from using the name or any confusingly similar ones for its products. And finally, Tiger Brands will be selling its deciduous fruit business, Langeberg & Ashton Foods (LAF), for R1 to a consortium consisting of a coop of local fruit growers in Ashton (Western Cape) and a finance institution. The move falls under Tiger Brand’s portfolio optimisation strategy, and as part of the deal, Tiger will commit R150m towards establishing a community trust for the benefit of the larger Langeberg community.

VAT unchanged at 15%, but the general fuel levy is going up
By Ti Economist, Carey Leighton

On Wednesday, 21 May 2025, Finance Minister Enoch Godongwana presented the third version of the budget (the first two versions were opposed by members of the GNU and rejected by Parliament). What’s in this budget: No VAT hike, but the general fuel levy will be +16c/l more for petrol and +15c/l for diesel. There is no inflation adjustment in personal income tax brackets (‘stealth tax’), while excise tax (‘sin tax’) on liquor will increase up to +6.75% for some products. The social grant budget will increase by +R1.6bn – let’s see if Budget 3.0 is ratified.

Now to some economic indicators released by Stats SA this week. Inflation (CPI) remains contained at +2.8% for Apr 2025 – fuel prices are lower than last year (fuel deflation: -13.4%) and CPI for food and non-alcoholic beverages was at +4.0% (ticking up for meat, oils and fats, and hot beverages). Real retail sales growth came in at +1.5% for Mar 2025 (at constant prices, so inflation has been excluded). The lower growth rate is likely due to the timing of the Easter weekend, which was at the end of March in 2024 but in April for 2025.

Comment: Let's wait to hear if Budget 3.0 goes ahead. Big decisions, big impacts.