Boxer is increasingly looking beyond traditional grocery retail as it builds new revenue streams from its growing customer base.
The retailer is investing in data analytics, advertising and digital services as part of a broader strategy to strengthen earnings while keeping its core offering competitive.
Central to this push is B-Inside, a supplier portal that gives brands access to detailed insights on how customers shop in Boxer stores. The platform uses data from the retailer’s loyalty programme to track buying patterns and trends. Suppliers pay to access this data, giving Boxer a new income stream.
CEO Marek Masojada said the portal allows the company to turn its customer data into a commercial asset. “It’s an opportunity to monetise an income stream that we can utilise to subsidise prices in our business,” he said.
Boxer is also expanding into advertising through its newly launched B-Media platform. This allows suppliers to market their products directly to Boxer shoppers across multiple channels, including in-store media, social platforms and broadcast content.
Liquor is a key growth area; bottle stores are being added alongside existing supermarkets.
Masojada said the platform connects brands more directly with customers using Boxer’s own communication channels.
“B-Media is the latest in our innovation journey, and this is now looking at all the channels that Boxer uses to talk to its customers, on TV, radio, online, social media, etc,” he said.
“It’s about giving suppliers the opportunity to speak directly to our customers through our platforms. Suppliers will be able to subscribe or book space ... So in the same way, you expect a revenue stream to go out of this.”
The move mirrors a global retail trend whereby supermarket groups use customer data and advertising to boost margins as traditional grocery profits come under pressure.
Boxer, which has 576 stores now, remains focused on expanding its core business. Growth is still being driven by new stores, particularly in underserved areas. The retailer plans to open about 60 new stores this year: 25 supermarkets and 35 liquor outlets. Liquor is a key growth area; bottle stores are being added alongside existing supermarkets.
Masojada said Boxer still sees significant room to grow its footprint. “We believe there is a strong opportunity to open many more stores across South Africa.”
At the same time, Boxer is investing in upgrading stores and improving fresh food offerings such as butcheries as part of a broader capital spending programme. It will spend R1bn this year.
The company is also building its digital ecosystem, including a mobile virtual network offering linked to its loyalty programme. While still small, the service is gaining traction as customers are attracted by rewards such as free data.
Loyalty is becoming increasingly important to the business. The rewards programme has 2.7-million members.
Masojada said B-Rewards members are consistently generating larger basket sizes than non-members, while overall transaction growth and basket sizes continue to improve. However, the retailer is closely watching consumer transport costs, which could influence shopping frequency patterns over time.
There is no doubt that Boxer and Shoprite have taken the opportunity to gain market share. Relative to peers, they are in a class of their own for the time being
— Stephan Erasmus, Anchor Capital fund manager
“I think people will be wary of the additional cost of transport,” Masojada said.
Commenting on the retailer’s annual results performance, Anchor Capital fund manager Stephan Erasmus said the trading margin came in ahead of expectations, highlighting solid execution, and Boxer continued to outperform key rivals.
“There is no doubt that Boxer and Shoprite have taken the opportunity to gain market share,” he said. “Relative to peers, they are in a class of their own for the time being.”
However, he pointed to some pressure points. Boxer fell short of its store rollout target last year, opening fewer stores than planned.
Erasmus said all listed retailers are keeping an eye on developments in the Middle East.
“Boxer management expects higher oil prices to filter through to higher food prices over time, for instance, due to increased logistics costs. Notably, early financial 2027 trading is running slightly below second-half 2026 levels. Management is confident they can open 60 new stores in financial 2027, which would provide welcome support to turnover.”
Business Times
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.