Pick n Pay shares drop after warning retrenchment costs will eat into earnings
By Karl Gernetzky - Oct 3rd 2017, 08:47
Retailer Pick n Pay’s share price fell more than 1% on Monday afternoon after it warned shareholders that retrenchment costs would drag down its interim headline earnings per share (HEPS) by a slightly bigger margin than previously estimated.
The grocery chain said in a trading statement that HEPS for the 26 weeks to August 27 would be at least 19c, or 20%, lower than the 82.43c reported in the matching period, a difference of 2c from its July estimate.
In April‚ Pick n Pay launched a voluntary severance programme, offering employees one-and-a-half weeks of pay for each completed year of service‚ plus four weeks of notice pay.
Without the retrenchment process, HEPS was expected to increase by between 10% and 15%, to 90.67c and 94.79c, with the company expecting the cost of the programme to be fully recovered by the end of the financial year.
CEO Richard Brasher said: "On a normalised basis, excluding the voluntary severance process, we again delivered a double-digit improvement in profitability."
During the period, turnover grew 5.1% with the company restricting selling price inflation to 3.6%, Pick n Pay said.
At 2.35pm Pick n Pay’s share price was down 1.44% to R56.78. Its first-half results are expected on October 17.
© BusinessLIVE MMXVII
Checkers brings world-class retail to Constantia with new flagship store
27/11/2019 - 13:01
Checkers has opened the doors to its state-of-the-art 2 330 m² flagship supermarket at the Constantia Emporium as the retailer continues to take innovation to new heights.
Woolworths carves out market share in SA
27/11/2019 - 10:11
In Australia, David Jones's sales declined 2.1%, with the company saying a store refurbishment contributed to the decline.
Push and pull strategies work together to keep consumers coming back for more
26/11/2019 - 10:20
The retail sector is under increasing pressure as consumers have shrinking disposable income in a strained economy. Maintaining share of wallet is critical. Relying solely on a push route to market strategy from manufacturers into retailers is not enough to get consumers buying products. A pull strategy needs to coexist with the push to drive brand consumption. Integrating these strategies requires intelligent and insightful decision-making. This, in turn, requires data generated through smart technology which provides line of sight across the value chain from manufacturer to distribution, retailer to the consumer.
Exclusive leases must fall: Commission cracks whip on Shoprite, Pick n pay, Spar, Woolies
26/11/2019 - 09:57
The Competition Commission Inquiry into Grocery Retail, published on Monday, called for an end to the exclusive leases negotiated by national retail chains in all shopping malls across the country in a bid to open up access to markets for smaller players.
Today’s customers are loyal to speed and convenience, not brands
25/11/2019 - 11:15
Consumer expectations are rapidly shifting as technologies such as mobile, geolocation, social media and increasingly, Internet of Things devices and wearables, connect people to a world of easily accessible information and convenient services. With the ability to browse, compare and order with a few swipes and taps, consumers are becoming trained to value convenience and service above nearly anything else.