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Boxer says it remains firmly on track to deliver its ambitious store expansion strategy, with its pipeline for new stores now at its strongest level despite a tougher consumer environment and slowing sales growth.Speaking at the retailer’s second AGM on Tuesday, Boxer CEO Marek Masojada said the discount retailer, which was spun off from struggling Pick n Pay in 2024, remained committed to the medium-term rollout plan outlined when it listed on the JSE, with expansion opportunities still available across South Africa.The comments came just after Boxer released a trading update showing that turnover for the 20 weeks ended July 19 grew 7.2%, slowing from the 10.9% growth reported in the second half of its 2026 financial year. Like-for-like sales increased 2.2%, while the retailer said it continued to gain market share despite persistent selling price deflation across its shopping basket.Read: NEWS ANALYSIS | Pick n Pay’s delayed recovery hits labour roadblock“The reported deflation is the consequence of continued deflation across key commodity categories, particularly maize meal, rice and flour, which all experienced double-digit deflation during the period,” the statement said.Masojada said Boxer continued to prioritise the quality of new stores over simply increasing the number of openings.The retailer opened 19 new stores during the first 20 weeks under review, comprising six superstores and 13 liquor stores. It said it remains confident of meeting its previously communicated target of opening 25 superstores and 35 liquor stores during the 2027 financial year.According to Masojada, Boxer, which had already invested in additional distribution capacity, now has sufficient infrastructure to support further expansion.“Our infrastructure is in place to take on these stores. We invested last year in an additional distribution centre, and we have across our seven distribution centres the capacity to take up to 200 more superstores,” he said.He added that Boxer was expanding across all nine provinces and would continue to open stores wherever suitable opportunities emerged rather than prioritising specific regions.The retailer expects turnover growth to accelerate in the second half of the financial year, supported by an anticipated increase in selling price inflation and a stronger contribution from new stores, with most planned openings scheduled for the latter half of the year.Even with slowing sales momentum, Boxer said strong growth in other trading income and tight margin management should enable it to maintain its first-half trading profit margin at the same level as a year earlier.Boxer has grown by more than 15% since listing on the bourse, taking its market capitalisation to just over R33bn, more than double the value of parent company Pick n Pay, which is currently valued at R13bn. Shares in the company declined by 4% following the AGM and the trading statement on Tuesday morning.
