South Africa’s favourite discount supermarket offering great prices for over 50 years

The retailer’s journey started in 1977 when KwaZulu Cash & Carry was created in the centre of Empangeni, KZN.

The company operated as an essential commodities wholesaler, focusing on maize meal, rice, samp, oil, and beans.

By the late 1970s, the company had shifted its focus to complete retail, supplying the informal market, bulk consumers, and retail consumers. A second branch was then opened in Empangeni in 1979.

The company was acquired by its founders from an independent group of investors in 1988. The company’s name was then changed in 1991 as per an expansion plan into other provinces.

Under the name of ‘Boxer Cash & Carry,’ new stores were opened in East London and Queenstown in September 1995.

In 1996, the Boxer Cash & Carry concept was further expanded to Mpumalanga, thanks to the opening of a new store in Burgersfort.

In late 1997, a new corporate identity logo was adopted, and the company started trading as Boxer Superstores to reflect its role as a retailer.

The company continued to grow in areas where it believed it could meet consumer needs. It then merged with one of its parent companies, Goss & Co, adding three outlets in the Transkei.

In October 2001, Boxer Superstores’ first step into the North-West Province was marked by the opening of a location in Mafikeng. A year later, Limpopo saw its first store in Tzaneen.

In 2002, Pick n Pay acquired Boxer 2002 for R185.5 million. The move formed part of Pick n Pay’s strategy to expand its reach into rural and peri-urban areas in South Africa, which would later prove to be a significant boost.

Massive expansion

Boxer has seen noticeable growth over the decades, providing an array of company formats across a defined set of models, ranging from full-service discount supermarkets to hardware and liquor offerings.

Over the last five years, Boxer’s store count has grown rapidly from 298 to 525, with 48 new stores opening in FY2025.

Looking ahead, Boxer will prioritise new stores in Gauteng and KwaZulu-Natal to face increasing competition in the regions.

R1.2bn is set to be invested in new stores and a new KZN Distribution Centre, which will serve over 100 stores.

With 320 grocery stores versus 175 liquor stores, the group aims to narrow the gap between the formats more quickly.

Pick n Pay is also converting several of its core grocery stores into the Boxer brand, as the parent company is dramatically restructuring.

The Boxer Rewards Club has also already signed up 1.9 million members since its launch in October 2024, a remarkably fast uptake, partly thanks to a partnership with Capitec.

In recent times, the company has become a strong focus for investors following its initial public offering (IPO) in November 2024.

Amidst serious cash struggles for Pick n Pay, which was technically insolvent and in breach of its debt covenants, the group implemented a two-step recapitalisation.

The first part included an R4 billion rights offer for Pick n Pay shares, which raised R4 billion.

The IPO of Boxer raised R8 billion for Pick n Pay, which still maintains roughly two-thirds of Boxer following the listing.

The success of Boxer in recent years not only got Pick n Pay out of a challenging position, but also means that its market cap of R29 billion is more than its parent’s of R19 billion. 

In its most recent financial results for the 53 weeks ended 02 March 2025, Boxer’s turnover grew by 13.2% to R42.3 billion, while its trading profit increased by 9.9% to R2.3 billion.

Issued on BusinessTech by Luke Fraser | https://businesstech.co.za/news/business/826876/south-africas-favourite-discount-supermarket-offering-great-prices-for-over-50-years/