South African Consumer Feedback from US investor meetings

Research evidence excerpt

South African Consumer Feedback from US investor meetings

J P M O R G A N CEEMEA Equity Research

29 June 2026

South African Consumer

Feedback from US investor meetings

Over the past week, we met with US investors. Discussions were largely South African Consumer

ACconcentrated in four names: Clicks, Shoprite, Tiger Brands and Pepkor. In drug Shaun Chauke

retail, the price war was the dominant topic. Sentiment generally supported staying (27-11) 507-0735

on the sidelines, with the competitive reset still viewed as early and likely to be shaun.chauke@jpmorgan.com

prolonged (18–24 months). A number of funds indicated they have exited Clicks, J.P. Morgan Equities South Africa (Pty) Ltd.

while only a small subset is willing to engage from a longer-term perspective— Elena Jouronova, CFA

acknowledging near-term pain, but also the view that the business should still be (971) 4561-2010

elena.jouronova@jpmorgan.com

able to generate attractive returns even if returns structurally step down. In food J.P. Morgan Securities plc

retail, Shoprite remain the clear favourite as a structural market-share winner. We South African Equity Strategy

would also highlight that, for many US funds, Shoprite is seen as the core “must-

Inga Q Galeni ACown” exposure when accessing the broader South African consumer basket. Tiger

(27-11) 507-0335

Brands remains our top Overweight on continued operational progress and what inga.galeni@jpmorgan.com

we view as compelling valuation upside (notably linked to Super Bakeries). While J.P. Morgan Equities South Africa (Pty) Ltd.

the stock has not been top of mind for many investors, we came away with

increased interest to do further work, with several investors attracted to the

idiosyncratic nature of the investment case and the improving execution backdrop.