Shoprite’s employee trust pays out R500m in two years

Customers queue to enter a Shoprite Holdings Ltd. supermarket in Alexandra, Johannesburg. Photo: File

Customers queue to enter a Shoprite Holdings Ltd. supermarket in Alexandra, Johannesburg. Photo: File

Published Apr 5, 2024

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THE Shoprite Group has paid out more than R500 million to employees through its Shoprite Employee Trust (SET) in South Africa, barely two years after the trust was established.

Valued at R8.9 billion following the conclusion of the transaction in May 2022, the Trust was established on a non-vesting, evergreen basis with 40 million Shoprite Checkers shares.

Its aim is to ensure the group’s valued employees benefit from its ongoing success via the Trust.

Under the scheme, permanent employees with two years or more of service benefit from distribution payments every six months, in line with the group’s dividend payments.

The largest retail group in the country said yesterday its Trust had surpassed the R500 million mark in payouts to eligible employees, following the fifth distribution payment.

The Trust was established to recognise the role the group’s people play in the retailer’s growth and success, and to maintain an engaged and loyal employee base.

Since May 2022, the Trust had yielded positive financial results in excess of R500m for more than 122 000 employees and their families.

The group had also invested further in South Africa by offering more than 1 500 products for R10 or less to ensure its 29 million customers can put affordable food on the table.

Shoprite also created 8 131 new jobs in its last financial year, trained 6 250 youth in a career in retail, took part in the YES initiative and funded the studies of 200 tertiary students through a bursary programme.

Its CSI programmes also include serving· 273 264 meals every day to vulnerable communities.

BUSINESS REPORT