Editing Shoprite Holdings Limited (section)

== Industry Overview and Competitive Positioning ==
Shoprite belongs to the retail industry, specifically in the food retailer and wholesalers sector. This industry, which is highly competitive and dynamic, is driven by changing consumer preferences and technological advancements. Shoprite has addressed the industry dynamic of ever changing consumer preferences by continuously launching new products to retain existing clientele and attract new customers (particularly higher-income customers). In 2022, they launched 1 285 new products and five new store formats with the intention of growing their market share in the premium food retailer sector. In terms of technological advancements, Shoprite is at the forefront and the industry leader. This is evident when looking at the success of their digital commerce platform, called Checkers Sixty60. This was South Africa’s first on-demand grocery delivery service and has achieved a 75% share of the grocery delivery market.

=== Porter's Five Forces ===
The “Porter's Five Forces” framework is used below to analyse the competitive intensity and attractiveness of the retail industry in which Shoprite operates in. 

# Threat of new entrants: The retail industry has a low to moderate threat of new entrants. Barriers to entry include high capital requirements, economies of scale, and established distribution networks. However, online retailers such as “Takealot” as well as pharmacies such as “Dis-Chem” have increased their food product offerings and are disrupting traditional food retailers.
# Bargaining power of suppliers: The bargaining power of suppliers in the retail industry is moderate to high. Retailers depend on suppliers for product availability and quality. However, retailers may be able to negotiate lower prices by consolidating their purchasing power or by developing their own private-label brands. Shoprite being the market share leader inherently has considerable purchasing power as well as its own private-label brands.
# Bargaining power of buyers: The bargaining power of buyers in the retail industry is high. Consumers have numerous options for where to shop and are price-sensitive. By focussing on offering customers great value on high quality products, Shoprite has been able to attract and retain buyers as is evident by their 5.4% increase in average basket size.
# Threat of substitutes: The threat of substitutes in the retail industry is high. Consumers have numerous options for where to shop, including traditional brick-and-mortar stores, e-commerce platforms, and discount retailers. Shoprite has been able to retain its customers through its innovative digital commerce platform and increased product offerings.
# Competitive rivalry: Competitive rivalry in the retail industry is high. There are numerous players operating in the industry (such as Pick n Pay, Woolworths and Spar). Pick n Pay has recently posed a threat to Shoprite with its increased openings of its Boxer stores which aim to gain a larger portion of the lower-income market which Shoprite has dominated. Shoprite has however been able to maintain its market leadership position in South Africa, by being the largest retailer in terms of market capitalisation, sales and profit. Shoprite has even grown its market share to 32.1% in 2022. This was possible due to its industry leading digital commerce platform and the acquisition of the “Cambridge Food and Massfresh” businesses as well as the “Masscash Cash & Carry” assets.

The food retail industry is defensive and is thus able to be successful during this challenging economic environment. Even with the supply chain constraints and increased cost of food brought on by loadshedding, high unemployment and the Russian invasion of Ukraine; people will still need to buy food and therefore the food retail industry can be successful. Additionally, Shoprite within the retail industry can be successful as a result of its competitive advantages in its digital commerce platform, its considerable purchasing power, and its increasing product offerings as discussed above.