Shoprite has bought Vida e Caffè, a Portuguese-inspired coffee chain with roughly 400 outlets across South Africa and the rest of the continent, and a majority interest in R&A Cellular, after reporting a 12.2% increase in annual headline earnings.

Group sales increased by 7.2% to R270.8 billion. Sales from its core South African supermarkets rose by 7.1% to R228.7 billion.

The growth was driven primarily by higher sales volumes rather than price increases.

Shoprite’s internal selling price inflation was only 0.8%, compared with national food inflation of approximately 3.9%. The group reduced prices on 11 500 products.

That helps explain why it continued gaining customers while households faced unemployment, high interest rates, and rising transport costs.

The Vida acquisition gives Shoprite access to hundreds of coffee outlets and strengthens its position in convenience food and premium retail.

R&A Cellular provides payment and mobile services, particularly in township and rural markets. Shoprite paid approximately R1 billion for the two transactions.

The company is using its distribution network, stores, and customer relationships to expand beyond traditional grocery retail.

It has already built substantial operations in online delivery, financial services, clothing, furniture, and convenience products.

This is what successful private enterprise looks like.

Shoprite cannot force anyone to enter its stores. It must persuade millions of customers, every day, that its prices and services are better than the alternatives.

If it fails, consumers can leave.

The competitive pressure on Shoprite forces it to reduce prices, improve distribution, and invest in technology.

There are legitimate concerns about concentration in the retail market. Large retailers possess advantages that smaller competitors cannot easily reproduce.

The answer is more competition through easier market entry and fewer regulatory barriers for new businesses.

Shoprite’s results show that South Africans remain highly price sensitive but will spend where companies provide value and convenience.

Its growth is ultimately the result of serving consumers successfully. That is a discipline much of the South African state could learn from.