CEO of S Africa’s Shoprite to retire after 37 years

Bloomberg

Shoprite Holdings Ltd. said Whitey Basson will retire as chief executive officer, ending a 37-year tenure that saw the company grow to become Africa’s biggest food retailer.
Basson, 70, will step down at the end of December and be succeeded by Pieter Engelbrecht, the company’s 47-year-old former chief operations officer, Cape Town-based Shoprite said in a statement on Monday. Engelbrecht, who has been with the company for more than two decades, will take over as CEO from Jan. 1. Basson has led Shoprite since the company’s formation in 1979. During his time in charge, the retailer has grown from an eight-store chain worth about 1 million rand ($72,862) to Africa’s industry leader with a market capitalization of 114 billion rand and more than 140,000 employees. To build on that growth, Engelbrecht will need to overcome weak domestic consumer confidence and is likely to take the company beyond Africa.
“Given the quality of the current management team and their exceptional track record, I foresee that the company will continue to grow from strength to strength,” Basson said in a statement. “Over the last few years many of the key operational responsibilities had already been successfully handled by the senior management team.”
Shoprite shares rose 4.7 percent to 200 rand in early Johannesburg trading. The stock has gained 40 percent in 2016 as sales increased even as slowing economic growth and rising food inflation have weakened consumer confidence.
The succession comes only a month after Shoprite said it doubled the CEO’s pay to 100.1 million rand in its last fiscal year, thanks to a bonus for beating a profit-growth target.
Basson said recently that the company will consider expanding outside Africa, following in the footsteps of fellow South African retailer Steinhoff International Holdings NV, which has transferred its primary listing to Frankfurt and made bids for companies in France, the U.K. and the U.S. Shoprite has stores in 15 African countries.
Basson will remain as a non-executive vice chairman to ensure an orderly leadership transition, the company said.