The boxer notes that customers are buying more goods because food prices are decreasing, but the retail seller cautions that food inflation may return later than expected.
According to interim results from Boxer Retail for August, published on Monday, selling prices fell by 2.4% over 26 weeks ending August 30, 2026, which was below the national rate of food and non-alcoholic beverage inflation, which stood at 2% for the same period.
Furthermore, it was announced on Monday that CEO Marek Masojad, aged 61, will retire at the end of February 2027 after more than three decades with the company. Justin Galloway, who has worked at Boxer for 14 years and currently heads supply chain operations, has been appointed as the incoming CEO and will take office on March 1.
Masojad, who joined Boxer in 1993 when the company had only five stores and an annual turnover of 120 million rands, will remain with the company until November 2027 to support the transition process.
Boxer's turnover increased by 6.3%, reaching 24.1 billion rands, a slowdown compared to the 10.9% growth recorded in the second half of the previous fiscal year. The retail chain attributed this slowdown partly to the increase in fuel prices in May and deeper selling price deflation.
Masojad stated: 'We are observing some improvement in trading momentum in the four weeks following the reporting period, which gives us confidence entering the second half of the year.'
Food Price Warning
Despite the continued decline in prices at Boxer, the company's latest data indicates a slowdown in the pace of this decrease. In August, the retailer recorded a selling price deflation of 3.1%, compared to 2.1% in September.
This means that prices were still falling, but not as quickly as before. Boxer reported that the gradual rise in food inflation, which the company had forecasted for the fiscal year, has not yet occurred, although it still expects price increases later than initially anticipated.
The company warned that uncertainty regarding food inflation, coupled with high oil and diesel prices, continues to affect its forecasts. Internal changes in selling prices reflect product assortment and do not necessarily represent a change in the cost of an identical household basket of goods.
Masojad noted that Boxer 'continues to see strong demand for the value we offer, but is aware of the broader economic environment, elevated oil and diesel prices, and uncertainty regarding food inflation.'
Retail Expansion
These results align with Boxer reaching the milestone of 600 stores as part of the company's ongoing expansion. During the reporting period, the company opened 24 stores, including nine Boxer supermarkets and 15 Boxer Liquor sales points.
By September 30, 32 stores had been opened for the fiscal year, which was fewer than the planned 60. Boxer also reported a continued increase in market share, although its results do not allow to determine whether customers are switching from competing retailers or simply increasing their purchases.
Despite the drop in selling prices and the slowdown in turnover growth, trading profit increased by 8.1%, exceeding 1 billion rands, and earnings before tax and capital expenditure grew by 10.6%, reaching 774 million rands. Boxer shares fell by 2% after the publication of the half-year results.
Additional Income
The company explained the increase in profitability partly through higher margins, economies of scale, and additional income from supplier services and retail advertising.
Masojad emphasized that trading momentum improved in the four weeks following the reporting period. He reiterated: 'We continue to see strong demand for the value we offer, but are aware of the broader economic environment, elevated oil and diesel prices, and uncertainty regarding food inflation.'
Boxer expects turnover growth to improve in the second half of the fiscal year, supported by new stores and stronger recent trading, but warns that short-term prospects for food inflation remain uncertain. The company's shares fell by 2% during morning trading.