Africa's biggest grocery retailer Shoprite is spending R3 billion to expand and upgrade its distribution centres.
Shoprite is likely to lose out when US based Walmart, which controversially bought a 51 percent holding stake in Massmart earlier this year, enters the South African market.
However it said on Tuesday that it has spent R1.5 million in the year to June at its distribution centres in Cape Town, Durban and Pretoria and would spend a similar amount in the next 12 months.
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Carel Goosen, Shoprite's Deputy Managing Director, said the investment in distribution centres would be additional to its annual capital expenditure of around R1.2 billion.
The group are also planning to open 74 supermarkets between now and June 2012 to fight new competition from Walmart.
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