Pick n Pay turnover up 11.5% to R51.3bn
The latest numbers from Pick n Pay, South Africa’s second biggest retailer, show that the group has emerged from the worst of the coronavirus crisis and civil unrest last year. On the back of strong customer demand and a hefty investment plan, Pick n Pay is reporting a jump in headline earnings per share of 60 per cent and a 10 per cent climb in turnover. Pieter Boone, CEO, Pick n Pay joins CNBC Africa for more.
Tue, 18 Oct 2022 16:03:18 GMT
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AI Generated Summary
- Pick n Pay reports an 11.5% increase in turnover and a 60% jump in headline earnings per share, showcasing a strong recovery from past challenges.
- The company's strategic focus on building market share through initiatives like the Boxer discount model and store revamps has yielded positive results.
- Significant growth in the clothing division and the online sector further bolster Pick n Pay's position in the market, with plans for cautious expansion into other African markets.
South Africa's second-largest retailer, Pick n Pay, has announced robust financial results, showing a remarkable recovery from the challenges of the coronavirus crisis and civil unrest last year. The company reported a substantial 11.5% increase in turnover, reaching R51.3 billion, and a remarkable leap in headline earnings per share of 60%. The CEO, Pieter Boone, attributes this success to strong customer demand and a strategic investment plan that has propelled the company forward. Despite facing unprecedented events and challenges such as security and insurance costs, Pick n Pay has managed to deliver impressive results.
One of the key factors driving this success has been the implementation of a new strategy that focuses on building market share in different segments of the market. The company's multi-year plan involves enhancing its discount model, Boxer, which has seen significant growth of over 40%. Additionally, the revamping of stores has shown positive results with a 20% increase in traffic and basket development. Boone emphasizes that patience is required as they continue ramping up strategies to strengthen their market positioning, ultimately creating long-term shareholder value.
Another area of growth for Pick n Pay is their clothing division, which has experienced phenomenal growth of over 14% in the first half. The company plans to open 67 new stores this year, solidifying its value proposition in the market. The online sector has also seen impressive growth, with over 200% increase in on-demand services. The integration of the Mr. D platform has been a success, with plans to expand to the entire store network by the end of the year.
While the focus remains on South Africa, Pick n Pay is cautiously considering opportunities for gradual expansion into the rest of the continent. Boone acknowledges the importance of steady and strategic growth in other African markets. Overall, the company's strong performance and proactive strategies position Pick n Pay as a significant player in the retail industry, poised for continued success in the future.
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