Capital expenditure

Capital expenditure increased to R1 090.9 million (2016: R788.7 million).

This comprised R516.0 million (2016: R339.5 million) in Southern Africa, including the expansion of the Western Cape and North Rand perishables facilities, as well as the acquisition of the West Rand property for future distribution centre development. In Ireland and Switzerland, capital expenditure amounted to R354.1 million (2016: R325.6 million) and R220.8 million (2016: R123.6 million) respectively, which was utilised for retail store refurbishments and technology upgrades.

Budgeted capital expenditure for the year ahead in Southern Africa, amounting to R666.0 million (2016: R752.0 million), includes the purchase of additional land in the Eastern Cape for a new dry warehouse facility, the acquisition of a retail property in KwaZulu-Natal and further technology investments. In Ireland, budgeted capital projects address a wide range of retail developments. In Switzerland, CHF26.0 million has been budgeted in 2018 for retail investments and upgrades to cash-and-carry premises. It is anticipated that the foreign subsidiaries will fund all capital expenditure from their own cash flows.