Boxer Stores: Investing in One of Africa’s Leading Discount Supermarkets

The Boxer Listing on the JSE is an exciting opportunity, and we're giving our community the chance to participate on the day they list by submitting an Expression of Interest (EOI) now. By visiting our New Listings page, you can indicate how much you'd like to invest, and EasyEquities will relay these instructions to the institutions managing the book build on behalf of boxer. If shares are allocated to us, we’ll distribute them to those who submitted an EOI, either in full or pro rata based on the allocation we receive.

Boxer Stores Background 

Boxer, a leading discount supermarket chain in Southern Africa, was founded in 1977 in Empangeni, KwaZulu-Natal, with a focus on providing affordable products to middle- and lower-income consumers.

Known as "Africa’s Favourite Discount Supermarket," Boxer has expanded significantly, now with stores in every South African province and the Kingdom of Eswatini, offering reliable, value-driven options for local communities.

Boxer was acquired by Pick n Pay in 2002, and recently, Pick n Pay announced plans to list Boxer on the stock market while retaining a majority stake, opening opportunities for public investment later this year.

“Boxer believes that it is well positioned to lead increased penetration of the discount category in South Africa over the coming years. As of the date of this announcement, Futureworld, a global strategy partner, estimates a potential ZAR106 billion of formal retail grocery spend in Boxer’s South African customer target market in locations without a Boxer presence (‘whitespace opportunity’).”

• Brand and Customer Proposition: Boxer offers a wide range of products, including 600 exclusive-label items, delivering strong value through discount combos and free deals.
• Efficient Discounter Model: The model focuses on high volume, value, and efficiency, supported by centralized distribution and cost-effective site expansion.
• Strong Growth and Profitability: Boxer’s 22 years of growth include an 18.6% CAGR and rising pre-tax profits, driven by high-quality stores and a self-funded approach.
• Double-Digit Growth Strategy: Growth is fueled by same-store sales and expansion into underpenetrated areas, with competitive pricing and cross-selling.
• Experienced Leadership and Empowered Employees: A seasoned management team and 99% of employees from disadvantaged backgrounds ensure local hiring and leadership development.

Regarding its prospects and strategy, Boxer is expanding its store network to tap into a ZAR106 billion market. This includes opening new Superstores and Liquors, offering better value through promotions and a loyalty program, and strengthening its supply chain with new distribution centers to improve efficiency and reduce costs. The Boxer Group seeks a strong capital base to support growth, optimize leverage, and drive returns while ensuring balance sheet flexibility for its strategy. Here's the full announcement or access the Boxer overview document here. 

How to Invest in Boxer Shares

Through EasyEquities, retail investors have the opportunity to apply to buy Boxer shares by submitting an expression of interest (EOI). To do this, investors should navigate to the Boxer EOI, found under New Listings. An EOI expresses interest in purchasing shares once listed.

If we are successfully allocated shares, investors will pay no brokerage fees on the transaction, with shares allocated directly to their EasyEquities accounts.

Important to Note:

• EOI submissions close at 11:00 PM (SAST), November 20, 2024.
• Submitting an EOI does not guarantee that you will receive any shares or the number of shares you requested.
• Note that allocations are not guaranteed.

For more information on investing or the EOI, investors can navigate to New Listings or click below. Please ensure you go through and understand the details of the offer before submitting your EOI.

America, the world’s largest national economy and leading global trader, recently held elections, and investors around the world are closely monitoring the outcome.

Last week, the South African Reserve Bank (SARB) kept the repo rate at 8.25% for the seventh consecutive meeting in July 2024, as expected. Two policymakers favoured a 25 basis point cut. 

In the intricate world of finance, money is the lifeblood that fuels economies, shapes markets, and drives innovation. Yet, how much do we truly understand the journey of money from its inception to its role in our daily lives?